Albania’s projected GDP growth in 2022 will be lower than initially reported, as a result of the war in Ukraine, according to the International Monetary Fund’s (IMF) updated World Economic Outlook.
Following a 8.5% growth in 2021 as it rebound from the COVID-19 pandemic, Albania’s GDP is projected to grow by 2% in 2022.
This is down from IMF’s initial 4.5% projection in its October 2021 overview. Real GDP projected to grow by 2.8% and 3.4% in 2023 and 2024 respectively.
Meanwhile, “global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023; This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than in the January World Economic Outlook Update.”
Economic damage from the war in Ukraine has reversed the post-COVID economic revival across the globe, contributing “to a significant slowdown in global growth in 2022.”
The report confirms that “fuel and food prices have increased rapidly, with vulnerable populations—particularly in low-income countries— most affected.”
“The war adds to the series of supply shocks that have struck the global economy over the course of the pandemic, contributing to more shortages beyond the energy and agricultural sectors,” it states.
Earlier this month, the European Bank for Reconstruction and Development also revised its predictions, finding that Russia’s war in Ukraine will slow down economic growth in Albania and the region.