Crisis, consumption decreased

In the fist 10 months of 2011, imports were 3.8 million tons in total, or 4.5% less than the same period of one year ago. This is the second year when the import volume falls. In 2010 it was even stronger, at almost 12%.

The figures show that the import reduction has affected almost all goods, from basic food to raw materials. But the plunge was even harder in those products that are used as direct consumption. According to the Customs, the import of processed goods, ready for final consumption, fell in the first 10 months of 2011 with 11%, warning for a further consumption reduction.

Consumers’ behavior changing

Experts say that the consumption decrease has two main causes. First of all, the crisis has changed the consumers’ behavior. They hesitate to spend and are more prone to save their money, due to insecurities. In the last two years, the bank deposits have increased with a twice higher pace than in the previous years.

The deposits have also increased, because the emigrants have transferred them from the neighboring countries, but Bank of Albania says that it also shows the consumers’ change of behavior. However, the insecurities generated by the crisis are not the only causes that are stopping consumption.

Bank of Albania says that many families have had lower incomes during the last year. The families that depend on remittances are the mostly affected, which have fallen with 7-8% since 2007, and keep shrinking with high pace.

But this has also affected the families that do not depend from emigration. According to INSTAT, to which is referred Bank of Albania, the real wages in economy fell with 1.8% in the second trimester of last year, because businesses have stopped increasing wages or have increased them less than the inflation. Consumption is the main cause why the economic demand has decreased at the minimal levels, in the last 20 years.

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