Exclusive / “Moody’s” for Albania – “Membership will undo the Covid effect, stagnation of reforms will lead to withdrawal of funds”
The credit rating agency, Moody’s, in its latest report on our country, provided exclusively by Scan, analyzes the impact of the opening of negotiations with the European Union and Covid-19 on the economy. “Progress in the negotiations is positive for Albania’s borrowing profile as reforms will strengthen institutions,” the credit rating agency said.
But Moody’s adds that, although the outbreak of pandemic will weigh heavily on short-term economic and fiscal projection, progress will help address structural economic challenges, such as the fairly narrow base of exports, which are driven by textiles.
Progress will bring more foreign direct investment to the country, Moody’s explains. The agency also emphasizes the rule of law as one of the aspects where reforms must be most focused. Any slowdown in reforms aimed at the rule of law will lead to a reduction in funding and the withdrawal of benefits that Albania can reap as a member state.
Among other things, the agency commented on last November’s earthquake, emphasizing the fact that, together with global pandemic, it will affect a decline in demand and remittances. “Coronavirus will provoke a recession this year and weigh on public finances,” Moody’s said.
*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.