The International Monetary Fund (IMF), at the end of its mission in Albania, in a statement to the media has announced that the Albanian economy is expected to shrink by 7.5% by the end of 2020.

"The earthquake of November 2019 and the pandemic of COVID-19 have had great consequences for the lives of the people and the economy of Albania. Due to the appropriate management of facilitative financial policies and conditions in the world, the macroeconomic and financial stability of Albania has been maintained. Albania's capacity to repay the loan to the Fund is widely adequate, but the risks have increased due to the crisis," IMF said.

In addition to a more severe global pandemic, the main risks come from rising public debt, weaknesses in public finances, and a relatively high level of non-performing loans. Managing these risks amid major uncertainties will require continued support for the economy, gradually re-creating room for policy maneuver as the recovery takes root, as well as closer oversight of the financial sector.

Significantly increasing the fiscal deficit in 2020 to mitigate the impact of crises is justified. Due to its dependence on tourism and remittances, the economy is projected to shrink by about 7.5% by 2020. The fiscal deficit is projected to grow to about 7% of GDP and public debt just over 80% of GDP by the end of 2020.

International financial support, including that of the IMF, as well as the issuance of Eurobonds in June will help meet financing needs.

We predict that the economy will recover starting from the second half of 2020 and will gradually strengthen during 2021, with the mitigation of the impact of shocks and the continuation of reconstruction after the earthquake," IMF declared.