bne IntelliNews – Albanian GDP up 5.53% yoy in first quarter
Albania’s GDP grew 5.53% year-on-year in the first quarter of 2021, the statistics office, Instat, said.
Despite its large tourism sector, Albania has withstood the coronavirus crisis better than expected. Growth in the first quarter of this year was primarily driven by the industrial and construction sectors, in part due to continued reconstruction after the 2019 earthquake.
In the first quarter, the main drivers of GDP growth were industry, electricity and water, with a contribution of 2.56 percentage points (pp), construction (1.09 pp), l public administration, education and health (0.97 pp) and real estate activity (0.58 pp). ). Several other sectors contributed less to overall growth.
However, there were slight year-over-year declines in professional and administrative services, which slightly decreased the total by 0.20 pp, and trade, transport, accommodation and food services (-0, 14 pp).
Compared to the last quarter of 2020, Albania’s GDP grew by 2.29%
On the expenditure side, the important final household consumption component increased by 1.49% year-on-year. General government consumption increased by 5.16% and gross fixed capital formation by 21.11%. Exports of goods and services rose 0.66%, significantly smaller than the gain in imports of 7.55%.
The European Bank for Reconstruction and Development (EBRD) predicts that its economy will grow 4.5% this year. In 2021, the EBRD said: “The planned large public investment program, including continued post-earthquake reconstruction activities, is also expected to boost domestic demand, and goods exports pick up strongly. The economy is expected to continue growing at 4% in 2022. These forecasts assume that there will be no resurgence of the pandemic; downside risks include the extent of tourism recovery during the post-pandemic phase. ”
The IMF previously noted that the recovery is underway in Albania, forecasting growth of 5.3% this year. However, an IMF official called on Albania to reduce “overambitious nationally funded public investment to protect priority spending on social protection, health care (including immunization) and post-crisis reconstruction. earthquake and to increase emergency reserves “.