Financial year 2020, Bank Governor: Industry and services were hit by crisis, growth for this year expected at 5.3%

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The Bank of Albania Governor, Gent Sejko, introduced the annual report for the financial year 2020, which was affected by the pandemic mainly in the industry and service sectors. The Governor declared that the Bank of Albania foresees a 5.3% growth during this year.

“Despite the many problems, we have avoided mass bankruptcy of businesses and the sudden growth of unemployment. The Albanian economy enjoys the premises for a strong recovery in the future. The social distancing measures led Albania to the recession, increased unemployment, and financial hardship for many businesses. The balance indicators were reduced. The economy lost 43 thousand jobs, unemployment rose by 11.8%. Average inflation was 1.6%, below our target as a Bank. The crisis hit private consumption and flows. Particularly felt in the industry and the service sector. The bank took measures within our competencies to confront the size and the complexity of this crisis. We reduced the interest rate, eased our approach to the banking sector, approved regulatory changes that postponed the loan installments by six months. We suspended the distribution of the dividend for the banking system. We eliminated the costs of banking electronic platforms and suggested electronic payment. The measures have been effective in reducing the impact of the pandemic. The financial market resulted calm”, Sejko said.