INSTAT has published this Wednesday the report for the fourth quarter of 2020, where it indicates that the recession in Albania has been lower than the initial projections.

In the year of facing the pandemic, the recession was at the level of -3.31% compared to 2019. From the initial projections of international economic institutions, it was expected that the economic decline would be from -6 to -7.5 percent.

According to INSTAT, the impact of the pandemic on the Albanian economy has been restrained compared to the region, where the average recession is -5.14%.

Official statistics on Gross Domestic Product and economic growth over the past year 2020 show that the shock that the economy received from the pandemic and the resulting recession were significantly more restrained than the initial expectations and concerns.

Whereas, initially projections from different institutions (including MFE, IMF, WB, EC, etc.) varied in a review interval from about - 6% to - 7.5%, according to preliminary statistics (based on quarterly national accounts) of INSTAT shows that the real economic growth (review) during 2020 was only almost half of the initial projections, specifically at the level of -3.31% compared to 2019.

In the judgment of the Ministry of Finance and Economy, this content of the level of impact of the pandemic shock on our economy, followed by the previous earthquake shock, proves once again the resilient structure of our economy in the face of such shocks (as it has resulted before during the global financial crisis in 2009). It is also attributed to a considerable extent to the relatively good macroeconomic and financial management from the authorities, through an adequate and well-coordinated mix of fiscal and monetary policy.

This more restrained impact of the shock on our economy is also observed in the regional comparative context, according to the table below, where Albania's review during 2020 of -3.31% is significantly more controlled than the average review of countries in the region of -5.14 %.

Positive contribution was given by the branches: Construction with +1.84 percentage points, Public Administration, Education and Health with +1.01 percentage points, Real estate activities with +0.52 percentage points, Industry, Energy and Water with +0, 49 percentage points and Professional Activities and Administrative Services with +0.36 percentage points, Financial and Security Activities with +0.27 percentage points, Information and Communication with +0.24 percentage points, Arts, entertainment and recreation; other service activities with +0.08 percentage points.

Negative contributed activities: Trade, Transport, Accommodation and Food Service with -0.96 percentage points, Agriculture, Forestry and Fisheries with -0.49 percentage points. Net taxes on products contributed negatively by -0.37 percentage points.