TIRANA, Sept 30 /ATA/ The Albanian economy suffered lower contraction than some countries of the region and was on a par with the economies of Serbia and Bulgaria which recorded a 10% contraction during the period of lockdown due to Covid-19 pandemic.
The Institute of Statistics (INSTAT) published data on economic growth for the second quarter of the year, which coincides with the months when the country was on lockdown.
According to the data, in this period, the economic growth compared to the corresponding quarter of the previous year is -10.2%, while the final consumption of the population decreased by 7.5%. There are several factors that contributed to this decline, such as the closure of 40% of businesses during March-June, the restriction on movement (including tourism), and the reduction of the purchasing power of 100 thousand employees provided with financial assistance by the state during the quarter.
But compared to the region, the contraction of the Albanian economy remains lower than in Montenegro which marked 20.2%, North Macedonia 12.7% and on a par with countries in the region such as Serbia and Bulgaria about 10%.
According to INSTAT, Italy, Albania’s largest trading partner during this quarter suffered a decline of 17.1% (euro zone average -15%).
Despite the contraction of a number of sectors following restrictions to contain the spread of the pandemic, sectors such as agriculture, energy, immovable properties had a positive impact on the economy recording growth.
Based on statistics, after the lockdown only 33 thousand persons were laid off, with 20 thousand re-employed, whereas for the remaining 13 thousand, the govt. has approved a program for rapid re-employment.
As to annual economic slowdown, it will not exceed 10%, but as a result of improvement in the second half of this year, it is expected to stand at -4%.
2021 will see economic recovery and ,according to WB projections, economic growth will reach the level of 9-10%.
Agriculture is expected to grow on average by about 1.3% per year in real terms over the period 2021-2023 and industry is expected to have an average annual growth of about 5.2% in the same period. Also, construction is projected to have an average annual growth of about 3.6% in the next three years and services an average annual growth of about 5.7%.
Over the span of three years, unemployment is projected to fall to 8%, the average in European Union countries.
/j.p/sm/
