Albania’s decline rate worse than expected, World Bank

TTimes
By TTimes October 9, 2020 11:04

Albania’s decline rate worse than expected, World Bank

The World Bank Group in their recent publication outlining the economic predictions about Europe and Central Asia, has revised the prediction for the economic decline of Albania from the previous –5 percent to the staggering –8 percent, signaling foreseen economic difficulties.

The World Bank report predicts that consumption will fall by 8.4 percent, whereas exports will fall by more than a third, a loss of 37 percent in both the sector of goods and services.

The World Bank report also identifies the business climate and the large public debt as impediments for foreign investments. The impact of the crisis in the Union, especially on tourism and productive industries, will also affect the Albanian economy for both exchanges and remittances.

According to the World Bank, the pandemics is kept under control and the Albanian economy will be able to recover next year, experiencing growth of up to 5 percent. Reconstruction efforts will help the economy according to the report, whereas the bulk will still fall to the sectors of tourism and services in general.

A similar negative prediction has been made before also by other domestic and international institutions. The Albanian economy is expected to recover at a slow rate, with 2021 being the year where growth may begin again, according to the Bank of Albania. According to EBRD, Albania's economy is expected to contract by 9.0 percent in 2020 due to the Coronavirus pandemic.

TTimes
By TTimes October 9, 2020 11:04