Revenues grow each year by 200 EUR

But the data from Ministry of Finances indicate that the future until 2014 will not be very bright. The Ministry predicts that by the end of this year, every Albanian will have earned 2973 EUR in total, with an increase of 6%, compared to 2008, while until 2014 this might go to 3600 EUR or 17% more. In 2008-2009, our economy experienced difficult moments, the effects of which are felt even today, with the government being obliged to review the budget three times within one year.

With this level of revenues per capita (based on a 3.2 million population) the Albanians are the poorest of the region, leaving only Kosovo behind. IMF data say that our country has small per capita revenues, compared to the other countries of the region, which remain much higher.

The average GDP per capita was calculated by the Ministry based on an average economic increase of 6% for the next three years, from 7% that it used to be before the crisis. The consequences of the lack of liquidity in the economy, incited by insecurity and mistrust have created new perceptions for the Albanians’ budget. Bank of Albania expresses it concerns that the Albanians are not spending money, and this saving trend is expected to grow. A recent study for Albania’s macroeconomic prediction, held by the Ministry of Finances, shows that the saving trend that has increased for families, and the trust that was further consolidated towards the domestic banking system have helped the banks recover the deposits they lost when people started withdrawing them during 2010. 2010 data show that the deposits in ALL have increased with 11%, in yearly terms, which is near the average of 2010. The deposits in foreign currency have increased with 28% due to remittances and summer business activity.

The final consumption level is predicted to grow in real terms, with a yearly average of 2.8% for 2012-2014. The final consumption growth is predicted to continue with a faster pace in 2012; 3.6 after the 2011 slowdown, which mainly reflects the families’ insecurity during this phase. In the next two years, the consumption growth is expected to go from 3.1% to 3.2% for 2013-2014, contributing to the GDP with 2.6 percentage points (during the two years), by a moderated contribution of 1.5%, the government predicts.

Data indicate that the VAT, the tax that shows how much the consumers have spent, has significantly decreased. The Ministry of Finances says that the VAT has plunged with 10%. The revenues from consumption taxation (indirect) during 2010 reached 152.8 billion ALL, 114 billion of which came from VAT and 38 from excises.

The economy sectors that have suffered more, based on VAT and compared to 2009, are construction and telecommunication, since the construction sector had less VAT taxes during 2010, and the reduction of public investments in telecommunication have caused a high level of investments that accumulated creditable VAT, and there have also been lower cell phone conversation fees, the Ministry explains.

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