World Bank Projection for Albania: Jobs will be destroyed

The Albanian economy is expected to suffer permanent signs in its economy allowed by the crisis that is causing COVID-19. In a report dedicated to Albania, the World Bank essentially analyzes what the consequences will be for all categories. According to the Bank as a return to economic activity is expected as soon as the impact of the virus is slowed in the following months, economic disruption will probably put many Albanian stresses on strong.

A lot of families will face financial difficulties as jobs are going to be destroyed, some individuals who gain income will be forced to stay home and care for family members, stay in quarantine, or be treated for their disease. Furthermore, the crisis will force businesses essentially to shut down, disrupt production chain relations, or allow workers who have created a ho experience on the job to escape, the friend may leave permanent marks on the economy” underlines the report.

The same stops in the banking sector and in the measures that were taken in response to this situation in terms of easeing monetary policy. The report estimates that banks entered this crisis with strong capital and liquidity amortizers, but will face difficulties if loans are not paid on schedule and their business future can be significantly affected.

A strong support package is needed to support the economy in easing the crisis. While the measures will dynamicly evolve according to the crisis' performance, and it can be expected that support policies, combined with a sharp slowdown in the economy, will dramatically expand the fiscal deficit in 2020, as well as increased public debt. Key measures include a guarantee fund allowing loans for businesses to pay off salaries, as well as increasing a social transfer. Monetary policy is being eased by providing unlimited liquids for the banking sector, and further reductions in the policy rate will further support the economy”, the report says.

The World Bank estimates that the impact on Albania's economy is even more felt by the fact that COVID-19 comes just months after last November 26th last year's devastating earthquake, which caused major material damage but, above all, human damage.

These two problems are expected to dramatically affect the economy this year. The decline in exports and uncertainty about tourism are also named as elements supporting pessimistic forecasts, writes the magazine Monitor.

“Exports have been overturned at a time when the most important trade partner, Italy, is facing a difficult economic situation. It is also becoming evident from day to day that Albania will face an extremely poor summer tourist season” highlights BB.