wiiw Forecast Reports

ALBANIA: Economic growth supported by external demand


Isilda Mara

in: Beneath the Veneer of Calm
wiiw Forecast Report No. Autumn 2023, October 2023 , pp. 48-51

Economic growth will accelerate to 3.5% this year, and a similar pace is expected over the medium term, owing to favourable external and domestic demand. A bumper tourist season has greased the wheels of the economy. Strong services exports and buoyant remittance inflows have pushed the current account deficit to unprecedentedly low levels, while FDI inflows have also performed strongly. Consumer prices will surge by a relatively modest 5%, but an inflation rate in double digits for staple foodstuffs is eating into the income of the most vulnerable groups.


Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Countries covered: Albania