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Confidence in the economy drops, consumers ended the year with pessimism

2024-01-06 11:39:44Biznes SHKRUAR NGA REDAKSIA VOX

Confidence in the economy drops, consumers ended the year with pessimism

At the close of 2023, consumers appeared more pessimistic about the country's economic situation, while for businesses the situation is somewhat different.

In the Bank of Albania's monthly questionnaire, the economic sentiment indicator that measures the ability of businesses to invest and consumers to spend rose slightly by 2.2 percentage points at the end of 2023.

Afraid of a further increase in prices, with the incomes in place, the citizens have also expressed themselves more pessimistic about the general economic situation, but also about the expectations of the year we have just entered.

Some of the business sectors have followed the same line. Throughout the second half of the year, trade is pessimistic following the decline in December by 0.3 percentage points. High prices, which are consequently bringing less consumption, are reducing the turnover of businesses in this sector.

While the industry, although with a slight increase in confidence as a result of contracts with customers, there is a drop in export requirements and an increase in the prices of raw materials, which indicate a poor performance of the sector.

The only sectors that believe the economy is doing well are Construction and Services. Influenced by purchases at the end of the year, the service sector, which includes supermarkets, bars and restaurants, experienced an increase of 2.6 percentage points. While construction continues to perform well, this indicator increased by 9.1 percentage points in December.


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