Confidence in Albanian economy declined by 3.2% in Q4 of 2017
The economic sentiment indicator experienced a sudden decline in the fourth quarter of 2017. According to the Bank of Albania, this indicator fell by 3.2 points reflecting a recent decline in confidence in the construction, trade and industry sectors as well as a decline in consumer confidence.
The decline in confidence indicators follows a downward trend of economic growth in the third quarter of the year.
After the stimulus of election expenditures in the first half of the year, the economy has slowed down its pace and this has been reflected in the confidence of businesses and consumers in the economy.
The confidence indicator in the industry sector fell by 2.5 percentage points in the fourth quarter of 2017.
This came mainly due to the fall in ordering contracts by 6.4 percentage points and in production by 1.9 percentage points.
After the growth for three consecutive quarters, the confidence indicator in the construction sector also fell by 12.4 percentage points.
The two components of the indicators marked a decrease of 14.8 percentage points of construction activity and of 10 percentage points the ordering contracts.
The confidence indicator in the trade sector fell by 9.9 percentage points in the fourth quarter, shifting by about 1.5 percentage points below its historical average.
The lowest level of the indicator was mainly driven by the decline in the business performance, and to a lesser extent than the decline in the balance of expectations for employment performance in the coming quarter.
The balance of the financial situation is also experiencing a downward trend.
The consumer confidence indicator also fell by 0.7 percentage points in the fourth quarter, halting the growth of the previous two quarters.
The only sector with positive results was that of service businesses, which increased by 2.5 percentage points in the fourth quarter of 2017.
SCAN
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