Bank of Albania experts are working to measure the impact of COVID-19 on economic activity.
The Bank of Albania announces that the material aims to measure the relative impact of the pandemic on various sectors of the economy, for which it has been possible to find indicators of economic activity with a monthly frequency.
According to the BoA, it is clear in advance that the decline in industrial production in the economies affected by COVID-19 will be a function of escalating the ban.
"The closing index reached the maximum level of average 0.85-0.95 in April-May, in the group of economies in this study. The monthly growth of industrial production for them is projected to fluctuate in proportion to the performance of the closing index in the economies affected by COVID-19. "Preliminary results suggest that industrial production is falling by about 2.5-4% for every 10 percentage points tightening of the 'closing index'," the BoA was quoted as saying.
Almost all economies in Europe and the world were forced to shut down for more than two months from mid-March to the end of May, in a bid to curb the effects that COVID-19 has on the loss of lives. This closure had a major effect on all economies.