ILO-Policy note: Fiscal space for social protection in Albania - 2022 UPDATE

In Albania, the ILO conducted in 2021 an analysis of the fiscal space for the social protection system and a review of the social protection system under the Joint UN Programme “Catalysing Municipal Social Protection.”

The twin shocks that hit Albania – the earthquakes in November 2019 and the COVID-19 pandemic during 2020-2022 – had significant implications on the economy, labour market and public finance. Furthermore, the inflationary pressures due to the war in Ukraine overshadow the post-pandemic economic recovery. All these factors affect the national capacities to generate sufficient financing for social protection and move towards a long-term goal of universal social protection.

Against this background, in the framework of the Joint UN Programme “Strategic Policy Options for SDG Financing,” the ILO conducted an update of fiscal space analysis of Albania by taking into account newly available data covering the COVID-19 pandemic period. This policy brief summarises the key findings and recommendations and highlights the main changes that affected the capacity of the country to create fiscal space for social protection.