The Bank of Albania:The Economic Sentiment Indicator Increased By 6 Points

The Bank of Albania reports that the economic sentiment indicator increased by 6 points compared to the third quarter, reaching 81.1%.

But despite the improvement, this indicator still remains well below the historical average due to the economic downturn during the quarterly March-May period due to the Covid-19 pandemic.

Trade and industry also resulted in sectors where the economic sentiment indicator did not improve significantly, mainly due to increased production and ordering contracts.

The services sector has also seen an improvement, one of the most affected by the crisis as a result of the performance of businesses and demand, as they are more optimistic about the next quarter on the performance of employment and capacity utilization.

After the improvement in the third quarter, the construction sector on the other hand did not stop working even during the quarantine without a slight decline in confidence in the economy in October-December.

Unlike businesses, citizens reflect a great deal of uncertainty about their economic situation, as consumer confidence has seen a decline during the fourth quarter of last year by 2 percentage points compared to the previous quarter.

This has been mainly influenced by the decline in large purchases such as those for apartments, cars or other goods that are not related to the products necessary for living, as they express pessimism for the first part of 2021 as a result of the crisis caused by the pandemic.

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