WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

Against all expectations, remittances, foreign direct investment and goods exports rose during the pandemic. Still, the negative economic fallout has been considerable and the economy is expected to contract by 5% in 2020. The government has approved a recovery plan worth EUR 365 million to relaunch the economy. Remittances will continue to cushion consumption, and private investments will gain momentum in the medium term. The economy is expected to bounce back in 2021, with growth of 5%. However, recovery remains uncertain, given the continued presence of COVID-19.