IMF: Albania’s economy to contract. Tourism hit hard by COVID-19

Due to the fallout of the earthquake and the COVID-19 pandemic, Albania’s economy is expected to contract sharply in 2020 and rebound in 2021. But uncertainty is high, says an International Monetary Fund (IMF) team after visiting the country.

Regarding the tourism sector in Albania the IMF says:

“The near-term outlook for the Albanian economy remains challenging, reflecting the significant impacts from the November 2019 earthquake and the COVID-19 pandemic. As in other parts of the world and reflecting Albania’s dependence on tourism and remittances, the economy is expected to contract sharply in 2020 and see a rebound in 2021. The outlook is subject to unusually high uncertainty, given the nature of the pandemic.”

Support for people and firms hurt by the shocks is warranted, but needs to be temporary, targeted, and transparent, embedded in a credible and prudent medium-term fiscal framework, it says.

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