WB lowers Albania's economic growth forecast - "3.4% in 2026, due to war. Human capital reform"
The World Bank has lowered Albania's economic growth forecast for 2026, due to the consequences of the conflict in the Middle East on fuel prices and the contraction of consumption.
Angella Faith Montfaucon, WB Senior Economist for Albania:
"Due to the conflict in the Middle East, we have revised down the economic growth for Albania. We expect economic growth of 3.4%, which is 0.5% less than the forecasts we made in the fall, related to energy prices and will also have an effect on consumption. But growth could be even lower if the conflict and uncertainty continue."
According to the World Bank, at this point where Albania is currently, with economic growth expected to slow, significant reforms oriented towards human capital are required.
Massimiliano Paolucci, World Bank Country Manager for Albania:
"Albania's economic growth is expected to slow as higher energy prices and trade disruptions related to the situation in the Middle East are negatively affecting purchasing power. Maintaining the economic growth trend, in conditions of a shrinking labor force, requires mobilizing untapped human capital, through reforming benefit schemes, easing restrictions on childcare, strengthening vocational training, and expanding employment for youth and women."
During the presentation of the regular economic report for the Western Balkan countries, emphasis was placed on the rapid aging of the population, at a faster rate than anywhere else in Europe. According to the report, within the next decade, 1 in 5 people in the region will be over the age of 65. The report highlighted underutilized capital, such as women, young people and other individuals who face barriers to entering the labor market.
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