TIRANA, March 27 – According to recent data published by INSTAT, the last quarter of 2019 witnessed an economic slowdown mainly linked to the earthquake that struck Albania on November 26. Annual growth is estimated to have declined to to 2.2 percent, from 4 percent in 2018, while the GDP decreased by 0.15 percent during the last quarter of the compared to the same period in 2018.
However, several sectors of the economy witnessed growth amid the earthquake effects. INSTAT data show that sector group of Industry, Energy and Water grew by 1.06 percentage points, Trade, Transport, Accommodation and Food Services increased by 0.43 percentage points, Financial Activities and Security increased by 0.23 percentage points, while Public Administration, Education and Health increased +0.16 percentage points.
On the other hand groups such as Professional Activities and Administrative Services decreased by 0.45 percentage points, and Agriculture, Forestry and Fisheries activity decreased by 0.21 percentage points. Meanwhile, net taxes on products contributed positively by 0.33 percentage points.
The final consumption of the population, increased by 1.64 percent, while the final consumption of the government increased by 2.63 percent.
Investments surge
According to the Bank of Albania, FDI Net inflows totaled 1.08 billion euros in 2019, increasing by 5.7 percent on an annual basis and reaching a record high.
The Netherlands was the largest investor in the country in 2019, with 235 million euros, up by 39 percent, surpassing Switzerland. The Dutch company Shell, which is conducting oil exploration in Shpirag, accounted for the biggest investments in the extraction industry.
However, investments in the energy industry fell by 26 percent to 330 million euros as a result of the finalization of major projects, such as the TAP pipeline and the Devoll River hydro power plants. At the same time, the energy sector is that which attracted the most investments in 2019, with 31 percent of the total.
