Economy shrank by 3.3% / INSTAT figures shows lower recession than predicted by international institutions

31/03/2021 21:34

The Albanian economy shrank by 3.3% during 2020 due to the situation created by the pandemic.

Although expected, the recession according to Instat agnecy turned out to be milder compared to the initial forecasts of the government and international financial institutions.

It was the fourth quarter that had a positive impact on the performance of the economy as Gross Domestic Product grew by 2.9%, after 3 months of deep decline as a result of the health crisis and the closure of the economy.

Construction results in the sector that has borne the brunt of the economy’s expansion in the last quarter, along with real estate activity, which despite the crisis have seen growth almost throughout the year.

Increased expenditures on health and education on the other hand have had an impact on mitigating the recession, which in the estimates of foreign institutions was projected quite pessimistic up to 9% according to the EBRD.

Most affected by the crisis according to Instat, are the activities of the services sector, trade and hospitality, something to be expected as a result of the extremely limited tourist season and restrictive measures. Precisely because of the high dependence on tourism, the initial estimates spoke of the deepest decline of the country’s economy, among the countries of the region.

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