IMF says Albania needs to raise tax revenues to cover increasing costs

By bne IntelliNews September 29, 2020

The International Monetary Fund (IMF) said that the Albanian authorities should increase tax revenues to sustain the higher spending needs of the people and the economy.

The statement was released after the IMF mission led by Yan Sun, conducted a virtual visit during September 17-28.

"The November 2019 earthquake and the COVID-19 pandemic have taken a big toll on the lives of Albanian people and the economy," the IMF said in the staff concluding statement of the first post-programme monitoring mission on September 28.

The IMF underlined that at the same time there is a need to contain and manage increasing fiscal risks and strengthen the management of public resources, notably of public investment.

The IMF also suggested that there is a need for the government to prepare contingency measures in case of a more severe pandemic.

According to the IMF projection, Albania’s fiscal deficit is projected to rise to about 7% of GDP and the public debt to slightly above 80% of GDP at end-2020. The economy is expected to contract 7.5% in 2020.

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