Worldwide pandemic has stress-tested the present boundaries of the global economy’s sustainability.
This is the first case when health care emergency forces governments around the world simultaneously to take measures in order to prevent the spread of the virus. The Covid-19 pandemic led to a planet-wide economic slowdown, affecting trade, investment, growth, and employment.
Small and Medium Enterprises proofed to be particularly vulnerable to the pandemic effects when it comes to limited resources to face growing economic pressure. With global and regional supply chains being tested by the lockdowns, the small companies that provide more than 80% of all jobs in the country and about 67% of total value added have been put under stress. The tourism sector, trade, and related economic activities appeared to be the most affected.
By analyzing official statistical macroeconomic and trade-related data for the period of three years 2018-2020 this research paper intends to contribute to further understanding the negative impact of the pandemic on the main sectors of the Albanian economy. This analysis makes radiography of the economy from the perspective of SMEs aiming to review government crisis response and to discuss main challenges for the SMEs in the future.
The research also charts a path out of the crisis to a ‘new normal’ that is resilient, digital, inclusive, and sustainable.