The World Bank has maintained its real GDP forecast for Albania at 3.8% for 2017, 3.6% for 2018 and 3.5% for 2019 in its latest Global Economic Prospects report, unchanged from the projections in its October Migration and Mobility Report. The WB also projected a 3.5% GDP growth for Albania in 2020. The WB noted that Albania’s economic recovery acceleration was driven by the diversification of its export base. As an oil exporter with floating exchange rate regime, Albania also managed to recover faster from the oil price plunge compared to peers with fixed exchange rates.
Still, a major challenge to Albania as a Western Balkan country, remains the expansion of labor supply, including raising female labor force participation rate and retaining skilled labor. Albania, along with other countries from its region, is recommended to develop its private sector and increase privatization. The WB also recommends further efforts to increase this region’s countries’ integration of the domestic industry into global value chains.