Recovery to Depend on Tourism; EBRD
Albania could be an attractive destination for European producers that are considering relocating production units from other continents to closer shores, the European Bank for Reconstruction and Development (EBRD) head of Albania, Matteo Colangeli said for local news provider Monitor. “I think that at this stage, promoting Albania's potential to major European producers would be necessary,†he noted.
The recovery of the economy in 2021 will depend significantly on the evolution of the situation of Covid-19, especially in the tourism sector, Colangeli said, adding that Albania can benefit from the opportunities that may arise from the Covid-19 crisis.
The EBRD head noted that the Covid-19 crisis should serve as an opportunity to accelerate the process of turning the country into a destination for year-round independent tourism and specialized tourism. “The EBRD aims to contribute to the recovery of the tourism sector in Albania, through a combination of infrastructure building, access to finance and expertise for the private sector.â€
“We continue to maintain the forecast for an economic recovery of 4.5% in 2021. But, that depends a lot on how the situation with Covid-19 will evolve, especially in terms of the upcoming summer tourist season. The contribution of tourism to the Albanian economy will certainly be affected by the moment of completion and the degree of easing of travel restrictions,†Colangeli noted.
“I would also expect agribusiness to adapt more easily, benefiting from EU-backed Instrument for Pre-accession for Rural Development (IPARD II) program grants and funding schemes dedicated to this sector (including the EBRD Agribusiness Support Program) and investing in increased competitiveness that would affect directly in business growth and exports,†Colangeli said.
“The economic recovery in the manufacturing sector will be related to the pace of recovery of Albania's trading partners, in particular Italy (which will continue to affect the level of remittances and consequently private consumption). Renewable energy will continue to generate Foreign Direct Investment in 2021,†the EBRD head said.
Talking about the long-term macroeconomic policies, Colangeli said the fight against informality and the creation of a level playing field for all businesses are among the most important measures to be taken by the government, along with the implementation of Justice Reform and capacity building in public administration and ownership problems.
“We have a very ambitious program for 2021. We want to contribute to the recovery of the tourism sector in Albania, through a combination of building infrastructure, access to finance and expertise for the private sector. We will continue to promote competitiveness for small and medium-sized enterprises in all sectors in the country, as well as in attracting foreign direct investment,†the EBRD head highlighted.
“We will also remain in focus as we remain willing to provide liquidity to enhance the financial sector's adaptive capacity, as well as to support utility public services, following the consequences of the Covid-19 crisis,†Colangeli noted.