Essay on Effects of COVID-19 in Albania Businesses

Studies have shown that COVID-19 has continued affecting different people in different ways. Individuals who get infected experience mild to moderate sickness and recovery, even without being hospitalized. The disease was first reported in 2019 being a contagious respiratory infection caused by a coronavirus. After a close study of the virus, scientists conclude that it started with animals who later infected humans (Koduzi and Cenko, 2020). Human beings started transmitting the disease to other people as the infection spreads from one individual to another through infected air droplets. According to Shereen et al.,2020, though the disease started in China, reports show that it has spread worldwide. There is no treatment for the virus; the only prevention method that people are observing is by keeping social distance and enhancing personal hygiene practices. The infectious disease has already killed many people, especially those who have other underlying health conditions. Moreover, in Albania, covid-19 has affected its businesses, but many businesses have arisen again with the country’s economic reforms (Schiffbauer, and World Bank 2020). However, Covid-19 has changed the global economy, and so does the future of Albania.

The arrival of summer tourists’ season and the continuous introduction of deconfinement measures has greatly led to a surge in covid-19 in Albania. Last month, the Albania Ministry of Health announced an increase in more dedicated hospitals for the treatment of Covid-19 after the numbers showed a tremendous increase. When the outbreak became more intense, Albania’s government had closed all the learning institutions, restaurants, and cultural premises to reduce the movement due to the infectious disease (Flynn, 2020). Later, a new wave of the virus arose after the country opened business premises to enhance its economic stability. If not well handled, the covid-19 virus can wipe away the whole nation since it is spreading very fast. Last year, the economy had shown a constant increase in the GNP; currently, the economy’s growth has gone down due to the covid-19. According to Mucha (2020), gender biasness has also increased as one of the covid-19 impacts. The pandemic has triggered a global crisis, whereby in Albania, the economy is expected to lose more than 1.4% of its GNP. Studies show that the slowing down of the economy has made many people get sick of anxieties (Elezi et al.,2020). Covid-19 has severely hit the country since it depends mostly on foreign direct investments. Bearing in mind that most people have lost their jobs, the government has recorded that some families cannot meet their basic needs.

The economic reforms have helped Albania’s economy because it has focused on strongly recovering from exports and investments. Statistics show that as a result of the 2019 earthquake and 2020 covid-19 pandemic, huge public investment will boost the economy to 4.1%. The economy’s growth is expected to increase and boost exports at an average of 7.2% annually, whereby the tax burden will be reduced by the government (Gjokutaj, 2020). The economic reforms have allowed credit growth, whereby the bank’s balance sheet would lead to excellent growth (Sarkodie and Owusu, 2020). The gradual reduction in interest rates and a rise in demand helps the economy to pick up strongly. Credit growth has raised the stock of private sector loans to around 36% of the GNP. Furthermore, according to Polo (2020), Albania’s economy is expected to experience a rebound in 2021, mainly because of its tourism recovery. The approximated economic growth in the future indicates a rebound of about 4 ¼ %. The only downside risk regarding the growth is the travel restrictions made to curb the virus’s spread (Willis, 2020). However, according to World Bank statistics, the economy will shrink 5% and will later rebound to 8.8 development in 2021.

References

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Flynn, R. (2020). Monitoring media pluralism in the digital era: application of the Media Pluralism Monitor 2020 in the European Union, Albania & Turkey: country report: Ireland.

Gjokutaj, E. (2020). Tax Burden in Albania, Kosovo and Western Balkans 2020. Kosovo and Western Balkans.

Koduzi, G., & Cenko, F. (2020). Correlation of Society Stringency/Openness Measures with Timely Trend of COVID-19 Cases-Case Study–Albania Versus Italy. European Journal of Medicine and Natural Sciences, 4(2), 34-41.

Mucha, S. (2020). Ethnic Albanian family businesses and COVID-19 pandemic: a gender-based comparison. Journal of Family Business Management.

Polo, A. ECONOMIC CRISIS AND TOURISM CRISIS IN THE CONDITIONS OF COVID-19 THE CASE OF ALBANIA. Education, Law, Business, 55.

Willis, C. (2020). Economic Effects of the COVID-19 Pandemic on Roma Communities in Albania, Bosnia & Herzegovina, Moldova, Montenegro, North Macedonia, Serbia and Ukraine.

Sarkodie, S. A., & Owusu, P. A. (2020). Global assessment of environment, health and economic impact of the novel coronavirus (COVID-19). Environment, Development and Sustainability, 1-11.

Shereen, M. A., Khan, S., Kazmi, A., Bashir, N., & Siddique, R. (2020). COVID-19 infection: Origin, transmission, and characteristics of human coronaviruses. Journal of Advanced Research.

Schiffbauer, M. T., & World Bank. (2020). Western Balkans Regular Economic Report, No. 17, Spring 2020: The Economic and Social Impact of COVID-19.