EC believes that the economy will grow less than the "finance" forecasts, due to prices and the strengthening of the lek

The European Commission believes that Albania's economy will grow less than the Ministry of Finance and Economy predicts. In the autumn report, the "commission" estimates that the Gross Domestic Product this year will increase by 3.5 percent this year and 3.1 percent during 2024.

Meanwhile, "finance" is more optimistic, predicting an economic growth of 3.7 and 3.6 percent, respectively, for the year we are leaving behind and for the one we expect.

"I would say it is still too early to predict. The war in Ukraine continues. The markets are still unstabilized, especially the fuel market. The forecasts of the Albanian institutions are always more optimistic than the international ones, says Arben Malaj, an economic expert.

The European Commission estimates that the expansion of the Albanian economy will be slowed down mainly by the drop in consumption as a result of high prices, employment still at low levels and by the strengthening of the lek.

"The strengthening of the lek is harming exports, causing our products to lose their competitiveness. We will have long-term consequences in the economy", said Eugen Musta, economic expert.

Meanwhile, the European Commission warns that Albania will absorb less foreign investment in the future, as a result of the tightening of financing conditions due to the increase in interest rates.

"This is not a good scenario at all for financial stability, so reforms are needed to prevent this from happening", said Malaj.

"The second approach should be provided by the monetary and fiscal policies of the Bank of Albania and the Government so that we do not lose foreign investments", added Musta.

In the report which analyzes the economies of the countries of the "union" and those contending to join the "bloc", Albania's efforts to reduce the public debt, which is expected to fall to around 60 percent of the Gross Domestic Product in the year ea, are positively evaluated. next. (A2 Televizion)