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Economic growth in the Europe and Central Asia region is projected to slow to 3 percent in 2022 as tighter macroeconomic policies and repeated COVID-19 outbreaks, including that of Omicron, weigh on consumer demand, the report said. latest World Bank Global Economic Outlook.
According to this report, economic growth for Albania in 2022 is projected to be 3.8 percent.
“The world economy is simultaneously facing COVID-19, inflation and policy uncertainty, government spending and monetary policy in unexplored territories. Rising inequality and security challenges are particularly detrimental to developing countries. “Putting more countries on a favorable growth path requires coordinated international action and a comprehensive set of national policies,” said World Bank Group President David Malpass.
For 2021 the growth in the country is estimated to have been 7.2%, or 2.8 percentage points higher than the forecast of June 2021. Of the countries in the region, Albania had in 2021 the second highest growth after Montenegro (by 10.8% , but this country also recorded the highest decline in 2020), followed by Kosovo (7.1), Serbia by 6%, Bosnia and Herzegovina and northern Macedonia by 4% each.
Compared to the June forecast for 2022, the expectations for the Albanian economy have been slightly revised by 0.1 percentage points more.
According to the report, the medium-term growth of Albania and Northern Macedonia could be driven by the acceleration of structural reforms in preparation for EU membership, given that this process is not further delayed.
The report states that the world is entering the third year of the pandemic and despite the growth is surrounded by many dangers and uncertainties. The three main risks facing developing countries, according to the World Bank are:
-Macroeconomic imbalances, which have come as a result of increased government debt.
-The world is facing rising inequalities, as Covid-19 made milestones in progress in reducing poverty.
-Increasing uncertainties, after the appearance of the Omicron variant that shows that the pandemic is not over. New variants could also put countries with high vaccination rates at risk, while those with lower levels could be at greater risk.
Inflation is another concern that may affect food supply, especially in countries in conflict.
The bank says it is clear we will face challenging times for the global economy – and especially for developing countries – as economic stimulus slows and lending conditions tighten.
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