Albania's economy experiences 2.52% downfall

Tirana Times
By Tirana Times July 1, 2020 12:05

Albania's economy experiences 2.52% downfall

TIRANA, July 1 - The earthquake that hit Albania last year, along with the COVID-19 pandemic drove the economy into a significant downfall during the first quarter of 2020.

According to the Albanian Institute of Statistics (INSTAT), the economy declined by 2.52 percent compared to the first quarter of 2019. Sectors which had the most negative impact the economy include the construction sector as well as the commerce, transport and hospitality sectors. Growth as regards the construction sector was hampered by the November 26 earthquake, dropping by 1.29 percentage points, while the rest were significantly affected by the Covid-19 lockdown measures.

Since March 10, after the identification of the first coronavirus cases with Covid-19, the sectors of trade, transport, accommodation and food service activities declined by 0.58 percentage points, while professional and administrative activities declined by 0.55 percent. However, the construction sector remained active during the lockdown period.

INSTAT further reports that the final consumption of the population, which constitutes the main weight of expenditures in the economy, increased by 1.12 percent. Exports of goods and services decreased by 2.13 percent, while imports of goods and services decreased by 6.24 percent.

According to EBRD, Albania's economy is expected to contract by 9.0 percent in 2020 due to the coronavirus pandemic. However, the economy is expected to rebound by 12.0 per cent in 2021 on the assumption that virus containment measures are short-lived, with recovery from the earthquake providing a further boost to the economy. 

Tirana Times
By Tirana Times July 1, 2020 12:05