Politics punishes economy

18/04/2011 15:45

Bank of Albania declares that the heavy political climate is plunging economy into pessimism, creating uncertainties for the business. According to the Bank, the indicator of the economic sensitivity, which measures the business values and the economic situation, has fallen during the first three months of the year at the lowest point since 2009, when global crisis was at its peak.

The sensitivity indicator, published by the bank every trimester after direct questionnaires addressed to several businesses and consumers, currently stays at 14.7 percentage points below the historical average.

On the latest monitoring, the Bank notes the pessimism due to the heavy political situation that has touched almost every sector of the economy. Construction and industry businesses, but also many other services, have declared that the heavy political climate and the current level of order and security in the country are the main factors that have impeded their normal activities. The first trimester coincides with the deterioration of the political climate, culminating with the January 21st demonstration. The pessimism of this economic situation has not touched only the businesses.

The citizens too have given unenthusiastic comments, after evaluating their financial status and their expectancies, although their reasons are connected to other causes. According to the bank, consumers feel concerned for the hike of the living cost, and they expect prices and unemployment to increase.

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