The losses created by the pandemic in Gross Domestic Product (GDP) during 2020 are expected to be offset within this year, according to the latest government forecasts.
The Ministry of Finance published these days the new projections of economic growth which program for this year's GDP to reach 1.683 billion ALL, a result slightly higher than in 2019 where the country's GDP was estimated at 1.679 billion ALL.
During 2020, the economic decline in value is projected to be 107 billion ALL or about 1 billion dollars, which are expected to recover during the following year.
Despite the government, the sectors of the real economy expect the recovery to take place gradually, to reach the level of 2029 during 2022.
The fason sector predicts weakness this year as well due to the restrictions that are being applied by Europe in the first 6 months of the year. From this situation the expectations for recovery have been postponed until 2022.
Even the International Financial Institutions in the projections of January 2021 announce that the economic level of 2019 will be reached in the next two years.
The World Bank in its latest forecast referred that the economy in Albania is expected to close 2020 with a decrease of -6.7%, while this year the growth will be 5.1%. Part of the 2020 losses remain to be offset in 2021, according to the WB.
Before the pandemic, the predictions were that Albania's economy this year would be at the level we expect today to be in 2023.
As worldwide, the Covid-19 pandemic, in addition to direct damage to human health, has given a severe blow to the economy and social developments such as the education sector.
Debts in both the public and private sectors have risen worldwide, while the costs of lack of distance learning knowledge are expected to have negative effects for decades.
Albania's public debt reached 79.7% of Gross Domestic Product (GDP) in the third quarter of 2020, increasing by 13.5 percentage points compared to the end of 2019, as a result of post-earthquake reconstruction expenditures, packages support for coping with the consequences of Covid-19 and the deteriorating budget situation, which led to a significant decline in revenues. Albania was ranked tenth in Europe for the highest level of public debt, in relation to the size of the economy, according to Eurostat data.