The World Bank predicts that the Albanian economy will grow by 3.2% this year, marking a significant slowdown compared to the projected 3.6% level expected to be closed by the end of 2023.

This estimation comes from the recently published Global Economic Outlook report. The expectation for 2025 remains the same, at 3.2%. Compared to the June 2023 report, both for 2024 and 2025, the estimate has decreased by 0.1 percentage points.

The highest growth in 2024 is expected to be in Kosovo, at 3.9%. Montenegro is at the same level as Albania, at 3.2%. Serbia is projected to expand by 3%, while Bosnia and Herzegovina and North Macedonia are expected to have lower growth rates, at 2.8% and 2.5%, respectively.

Global economy to grow slowly in 2024

The World Bank predicts that the global economy will slow down for the third consecutive year in 2024, decreasing to 2.4% from 2.6% in 2023, as stated in its latest report.

The global economy is on track to record its worst half-decade growth in 30 years, according to the World Bank.

The economy is expected to grow slightly in 2025, at just 2.7%, although the acceleration over the five-year period will remain below the average rate of 3.1% of the 2010s.

Despite the reduced likelihood of a global recession, mainly due to the strength of the U.S. economy, the escalation of geopolitical tensions will present new short-term challenges, said the World Bank, causing most economies to grow more slowly in 2024 and 2025 than in the previous decade.

Eurozone expected to grow slightly more in 2024

The World Bank predicts that the eurozone with 20 countries will grow by 0.7% this year, a modest improvement from the expansion of 0.4% last year.

The international financial institution expects economic growth in the United States, the country that led the way in 2023, with a growth rate of 2.5%, to slow down to 1.6% this year as higher interest rates weaken borrowing and spending.

China’s economy, the world’s second-largest, is expected to grow by 4.5% this year and 4.3% in 2025, significantly down from 5.2% last year.

China’s slow growth is likely to harm developing countries that supply the Chinese market with goods. These include South Africa, which produces iron ore, and copper-exporting Chile.

Japan’s economy is expected to grow by only 0.9%, half the pace of its expansion in 2023.