Fear of deflation. Businesses hesitate to invest

12/03/2016 15:35

Since when the world crisis affected the Albanian economy, the main
consequence was the slowdown of the investments by the private sector.
Individuals hesitate with the spending, while businesses hesitate with
new investments.

Businessman Stefan Pinguli says that it is a trust crisis.

Why is the business unsafe? For Stefan Pinguli, the biggest source of uncertainties is the state itself: “We are facing a massive change of laws and taxes that we cannot coordinate. All these matters have a psychological, financial and physical pressure on businesses and controls”.

Experts share the same opinion: “The biggest enemy of the economy is uncertainty”.

Adrian Civici says that with frequent fiscal changes and unclear economic policies or business climate, all consumers act only for the short term. They wait for a better and calmer period to make structural investments or bigger purchases.

The annual inflation by February reached 0.2%, the smallest in the past 13 years.

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