IMF projects economic growth of 4.5 percent in 2022 for Albania

In its’ latest Country Report, the International Monetary Fund projects economic growth of 4.5 percent for Albania in 2022 and with an inflation rate of 2.3 percent getting back within the monetary policy target.

As stated in the report, following the 2019 earthquake and the pandemic major impact, headline inflation has risen on account of higher food and energy prices, but core inflation has increased only modestly. The fiscal deficit widened sharply to 6.8 percent of GDP in 2020 and is expected to have remained at that level in 2021. Public debt increased to 77.2 percent of GDP at the end-2020 and is expected to increase further in 2021. The financial system has been stable and liquid and credit flows have continued to support the economy.

IMPF experts foresee that from 2022 onwards, economic activity is expected to remain strong as the impact of the pandemic wanes and international tourism continues to recover, but growth will be tempered by the phasing out of fiscal support and reconstruction and the maturing of the recovery cycle. In the medium-term, growth is projected to converge to its potential of 3.4 percent, a level held back by adverse demographic factors. Uncertainty over the outlook remains high. The emergence of vaccine-resistant variants at the global level or localized outbreaks in Albania, as well as potentially tighter global financial conditions and higher global energy prices, pose important downside risks to the outlook

For the full report please follow the link

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