IMF gives “homework” to Albania – “The economy will shrink, measures to be taken for recovery”
The Albanian economy will shrink by about 7.5 percent this year due to the effects of the November 26 earthquake and the COVID-19 pandemic, however it will begin to gradually strengthen during 2021, with the mitigation of the impact of shocks and the continuation of reconstruction. These are the forecasts made by the International Monetary Fund for the performance of the Albanian economy after a 10-day virtual visit held in our country. But in addition to these forecasts, the IMF urges the Albanian government to take a series of measures in order to recover as soon as possible.
Specifically, the IMF calls for a modest decline in the level of debt, which by the end of the year is projected to reach a record level of over 80 percent. Authorities are required to limit non-priority expenditures, to create room for sufficient expenditures on pandemic-related health care and social protection of the most vulnerable groups.
According to the IMF, budget support should be temporary, with identified beneficiaries, and subject to transparency and accountability, and with appropriate public financial management (PFM) control measures. The International Monetary Fund suggests intervention in the tax system, making it fairer, simpler, more efficient and more transparent, so that it can strengthen the mobilization of budget revenues, while improving the investment climate and reducing informality.
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