The price crisis will affect low-income families and increase poverty.

This was the forecast of the World Bank in its latest Spring 2022 Western Balkans Regular Economic report, where it also estimated the economy to shrink to 3.2%.

Albanian families spend half of their income on food and electricity bills. But as these expenses go up, as repercussions of the war in Ukraine, the first to feel the immediate impact are families with a low income.

According to the WB, the main challenge ahead for Albania is about handling the crisis.

“Economic growth is expected to decelerate to 3.2 percent in 2022 under the baseline scenario,” the report noted.

“Private consumption is projected to return as the primary driver of GDP growth,” it added.

Investments can continue to support economic growth if reforms for the improvement of the business climate are implemented properly.

According to the international financial institution, inflation will remain high this year, and it will not stop next year either.

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