Citizens of this country have less confidence in the economy. Both consumers and businesses are proving to be less optimistic about the future of their finances. Such is the conclusion of the Bank of Albania in the Consumer and Business Confidence Report. “Confidence in the economy has seen a drop of 4% in the third quarter of this year”, the report confirms, adding that this performance “reflected the drop of business and consumer confidence alike”.
A few days ago, the Bank of Albania published a report concerning the financial situation of households and businesses in Albania. The report published yesterday by the Bank also reflects a drop for these two categories. Banking experts explain this drop in confidence with the fact that they have fewer expectations regarding their finances, but also with the fact that they have made bigger purchases during the third quarter of this year, obliging them to be more cautious about spending due to feelings of insecurity in terms of what the future may have in store for them. “Consumer confidence during the third quarter fell by 0.7%”, the report in question states. On the other hand, the report also ranks the main sectors of the economy where there’s been a drop of confidence as far as the country’s economy will perform. First of all it’s the industry sector. The Bank of Albania confirms that “confidence of this sector in the economy fell by 0.1% as opposed to the previous quarter”. The report continues with the construction sector where confidence has seen a drop of 1.9%. The fact that this drop is higher than in other sectors shows that construction in the country is facing real difficulties. But, the Bank of Albania has also mentioned the service sector, which is very important for the country’s economy. Confidence of this sector in the economy has registered a drop of 3.2% during the third quarter of this year.
Consumers saving less and less, pessimism on prices and unemployment
They are saving less than before, almost half of the amount that they used to save before. Meanwhile, they’re pessimistic about prices and jobs in the next three months. This is suggested by the report issued by the Bank of Albania regarding consumer confidence in the economy. According to the report, current savings have seen a drop of 50% during the third quarter of this year, while their expectations as far as savings are concerned for the months to come have seen a drop of 42%. Meanwhile, this drop becomes even higher if we the level of purchases that they’ve made during this period. On the other hand, their financial situation this year has also seen a drop of 6.9%.