COVID-19: Economy to experience €1.8 billion loss

Tirana Times
By Tirana Times July 7, 2020 12:19

COVID-19: Economy to experience €1.8 billion loss

TIRANA, July 7 - Albania's ecnonomy is expected to lose about 1.8 billion euros as a result of the Covid-19 pandemic.

Based on the 2020 revised budget, the Ministry of Finance has foreseen a drop to 12.7 billion euros in Albania's GDP; Compared to the 2019 forecast which saw the GDP at 14.5 billion euros in 2020, there is a 1.8 billion euro decline. These losses are mainly a result of the effects of the lockdown during the months of March, April and half of May which the Albanian government imposed to contain the spread of the coronavirus.

Earlier, the EBRD predicted a 9 percent decline in the Albanian economy which is later expected torebound b y 12.0 per cent in 2021 on the assumption that virus containments measures are short-lived, with recovery from the earthquake providing a further boost to the economy. 

Furthermore, according to the Albanian Institute of Statistics (INSTAT), the economy declined by 2.52 percent during the first quarter of 2020 compared to last year's first quarter. 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.

Tirana Times
By Tirana Times July 7, 2020 12:19