[ad_1]
The Vienna Institute has lowered Albania’s economic growth expectations to 3.5% for this year. This estimate of 0.7% lower than the initial forecast is related to the impact of the war in Ukraine, the effects of which are being transmitted to the Albanian economy by slowing down its growth rates.
Although Albania has a low trade volume with Russia and Ukraine, the consequences will be significant, the report said. This is due to the trade relations that the country has with the countries of the European Union.
According to the institution, this will make prices stay high not only this year, but also next year, keeping inflation significantly above the Bank of Albania. In terms of employment, according to the Vienna Institute, the unemployment rate is expected to fall to 11.2% at the end of the year, from 11.4% in 2021.
“According to the baseline scenario, inflation this year will be 6%. In the medium term, inflation will fall to 3%. “Monetary policy has changed with rising interest rates, and government stimulus measures are intended to support consumption in some way.”
According to the report, among the countries of the Western Balkans region, Bosnia and Herzegovina and Northern Macedonia will have the lowest economic growth at 1.8 and 2.5%, respectively.
However, although declining, the projections of the Vienna Institute are significantly more optimistic than other institutions such as the World Bank or the International Monetary Fund despite the price crisis and are in line with the target of the Albanian government. The executive also has the same expectations for the performance of the economy for a growth of 3.5%.
top channel
[ad_2]
Source link
