Hopes for increasing consumption?

The governor’s message is very clear. The international circumstances are punitive for economies, and the only hope for keeping a satisfactory economic growth even for this year is growing expenses from the Albanian public. Will we have this chance? Official numbers say “no”.

According to the Customs, the imported goods for the first two months of the year has fallen with 22%, compared to the same period of one year ago. This is the worst result since 2008, when the price crisis started, which continued with the international financial crisis.

Plunging consumption is also proved by tax indicators. Although to the World Bank declared that the food prices have increased with 8% in the last four months, the budget revenues have fallen. The most significant indicator is the VAT. According to the Ministry of Finances, 5.2% less revenues than the predictions have been collected from this tax in the first three months, and only 0.8% more than one year ago, making this the worst result since 2002.

Indicators also show that bank loans are less accessible, although the citizen’s deposits tend to be long-termed, which shows that they have a tendency to consume less.

These indicators, attached to the World Bank worning that the world is facing a third high price crisis show that the salvation boat for the economic growth through consumption increase is taking water.

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