Economy plunged in pessimism

The Economic Perception Indicator fell with 7.9% in 2011, compared to the previous trimester. Bank of Albania, which conducted this survey, declared that this figure reflects the high level of pessimism in the Albanian economy since the end of 2009, when it received the first hit from the world crisis.

The Economic Perception Indicator is measured by the Central Bank through direct questions to the businesses of the three key economic sectors: construction, industry and services. To this result are added the consumers’ evaluations.

The Bank says that the pessimism in economy during the fourth trimester was caused by the business, especially that of the construction. The trust indicators have fallen to the lowest historical point, -26.6%. Construction had the hardest blows by the crisis, but the situation is even deteriorating, since to the fall decrease of the consumers’ demand are being added the government expense cuts, led by the fear of a possible financial depravity.

However, construction is not the only sector where pessimism has reached the highest historical level. The same thing is happening with the service sector, which is the biggest for the Albanian economy. The service businesses say that their financial situation has deteriorated due to the decline of the demand, which has also decreased employment. The two other components that fulfill the economic perception market, the industry and the consumers’ trust, have increased respectively with 0.8% and 3.1%. These two indicators, according to the Bank of Albania, have been insufficient for removing pessimism in economy.

Besides evaluating the business and the consumers for the current economic situation, the Perception Indicator also reflects their expectances for the future. It serves as a strong signal for predicting the progress of the short-termed economy, which is facing increased pressures due to the crisis.

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