Consume on the rise, investment and exports falling: BoA

The growth of the Albanian economy is estimated to have weakened in the second half of 2017, while this growth was sustained more by private consumption, but less by investments and exports.

According to the Bank of Albania, domestic demand increased by 3.5% in the third quarter of 2017, slower than the average growth of 4.6% in the first half of the year.

This is due to the slowdown in investment, as a consequence of curbing public investment after the election period, but also a lower contribution of private investment.

Investment growth in the economy slowed down to 3.8% in the third quarter, compared to the average growth of 13% in the first semester of 2017.

The Bank of Albania estimates show that a similar tendency has continued in the fourth quarter due to the further slowdown in investments and the deepening of the real export deficit.

Private consumption accelerated the upward trend to 3.3% in the third quarter, as it rose by about 2.2% in the first half of the year.

This growth is supported by increased employment and wages, by eased lending conditions and by improved consumer confidence.

The growth of private consumption is expected to continue in the fourth quarter of the year, while investments are expected to further reduce their increasing impact.

Indirect quantitative indicators that support the growth of consumer spending are the growth in imports of foodstuffs, the increase in vehicle imports, the increase in value added tax revenues and the growth of lending to individuals.

SCAN

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