EBRD Why the Albanian economy is expected to have the largest decline in the region

The relatively high public debt, as well as the low liquidity that Albania was facing at the beginning of the crisis, did not help it to provide a package of assistance, as at the regional level, said Matteo Colangeli. Reasons why Albania is projected by the EBRD to fall by 9% are related to its dependence on tourism, but also by other factors such as informality, expectations for remittances, the consequences of the earthquake, and the fact that Albania has entered a crisis with an economy already slowed down. Colangeli said that beyond short-term liquidity support, he thinks it would be important to create the conditions for a more comprehensive model of economic development, in which a more diverse group of industries, regions and social groups contribute and benefit from long-term growth. recovery period. The extent to which individual countries will be affected depends on many factors, including the relative importance of some sectors in Gross Domestic Product, their integration into the global value chain, geographical location and key trading partners, as well as the specific conditions that prevailed. before the crisis began. Albania turns out to be particularly affected by an unfavorable combination of some of these factors.