Consumption significantly reduced

As for the newly published monetary policy report, the Bank notes that the reduced food import and the fewer purchases show that the demand has weakened even further.

The main cause for these figures which are the lowest since 1997, is the reduced family consumption and reduced private investments. From the quick production generator in the first years of the crisis, the consumption request is now producing an opposite effect to the economic slowdown. The main cause is related with the insecurities families have because of the crisis.

Incomes are another reason why citizens are not buying as before. Bank of Albania says that the incomes have reduced compared to one year ago.

Although the Bank values that this indicator was improved in the last trimester of 2012 for a large group of families, especially those who have their salaries as their only resource, the incomes have kept shrinking. Official data say that last year, for the first time since 2006, the average salary in economy reduced with 6.5%. The Bank quotes in the last report that the real wages have kept slowing down even for the first trimester of the year, reducing this way the incomes for the employees of the private sector.

Top Channel