Figures on imports, lending and FDI hint slowdown of investment growth in Albania
Although INSTAT’s data on national production offered once again a positive picture for the first two quarters of the year as far as investments are concerned, at a time when gross fixed capital formation grew by an average of 12%, other indirect data show that investment growth in the Albanian economy is slowing down.
According to the Institute of Statistics, imports of machinery and equipment amounted to ALL 96 billion, up by 2.5% over the first nine months of the year, year-on-year.
Another indirect indicator, investment bank lending is also still weak.
According to the Bank of Albania, loans for the purchase of machinery, equipment and real estate as well as businesses decreased to ALL 183 billion at the end of August, down by 1.8% since the beginning of the year.
The decline is also evident in the FDI segment.
The weak performance of the second quarter has worsened the balance of the second half of 2017, down by 29 million euros or 7% less compared to the first half of 2016.
The only sector reporting a high investment growth this year is public investment.
According to government’s fiscal statistics, capital expenditures amounted to All 35 billion over the eight-month period, up by 33% compared to the same period year-on-year.
However, this increase is assessed to have been especially related with the general elections held in the middle of this year.