The World Bank published the new report on the regional economy which states that "Albania exceeded the growth forecasts made in autumn 2020".
The World Bank estimates that the measures taken and the resumption of reconstruction after the earthquake, contributed to the recovery of the Albanian economy.
"Albania exceeded the growth forecasts made in Autumn 2020, partly thanks to the measures taken and the resumption of reconstruction after the earthquake. However, the COVID-19 pandemic had serious effects on the economy: travel bans hit the tourism sector and public debt increased, ”the report said.
According to the WB, “Albania was hit hard, first by the November 2019 earthquake and then by the COVID-19 pandemic. With the rapid contraction of tourism and services, GDP shrank by about 3.3 %. "Reconstruction and COVID-19-related incentives mitigated the shocks."
"Reconstruction is expected to be the mainstay of economic recovery in 2021, aided by a slight increase in private demand due to ongoing travel constraints," the WB report said.
The WB notes that despite structural problems, labor market indicators corrected relatively quickly with the reopening of the economy after the initial closure.
Also, the exchange rate continues to be flexible, which allows Albania to assimilate external shocks.
"With the revival of economic activity, revenues are projected to increase to 27.6 percent of GDP during the period 2021-2022", estimates the WB report.