Page 28 - SE Outlook Regions 2023

2.0 Macroeconomic outlook

2.1 Macroeconomy - Albania

Albania key economic figures and forecasts

2016 2017 2018 2019 2020 2021 2022

Nominal GDP (EUR bn) 12.4 13.1 13.8 14.3 13.9 17.2

Real GDP (% y/y) 3.3 3.8 4.0 2.1 -3.5 8.5

Unemployment rate (avg, %) 15.4 13.6 12.3 11.47 11.7 11.4

Consumer prices (avg, % y/y) 1.3 2.0 2.0 1.4 1.6 2.0 6.7

Consumer prices (eop, % y/y) 2.2 1.8 1.8 1.1 1.1 3.7 7.4

General budget balance (% of GDP) -0.7 -1.4 -1.4 -2.0 -6.7 -6.7

Public debt (% of GDP) 72.4 70.1 67.7 66.2 77.9 84.1

Current account balance (% of GDP) -7.6 -7.5 -6.7 -7.9 -8.8 -7.5

Official FX reserves (EUR bn) 2.3 2.7 3.2 3.1 3.6 4.6

EUR/LC (avg) 137 134 128 123 123

Source: Instat, Bank of Albania, World Bank

2.1.1 GDP growth

Albania’s GDP growth has already slowed in the second half of 2022,
and the slowdown is expected to deepen going into 2023.

The latest figures from statistics office Instat show that Albania’s
economy expanded by 2.23% in the second quarter of 2022, a marked
slowdown from the 6% recorded in the first quarter of the year, when
Albania – in particular its large tourism sector – was recovering strongly
from the coronacrisis, as Russia’s invasion of Ukraine and related
sanctions led to a decline in growth across Emerging Europe.

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