“The decrease was not a result of non-registration of new businesses, but was more a result of closure of existing businesses,” said a report by the Municipality of Tirana
TIRANA, May 14 – The number of businesses operating in Tirana at the end of 2009 fell by 3,028 reflecting the consequences of the global financial crisis, a recent report by the Municipality of Tirana has shown.
The recently published report said the number of businesses in the capital in October 2009 fell to 26,677 down from 29,705 in September 2008.
“The decrease was not a result of non-registration of new businesses, but was more a result of closure of existing businesses,” said the report.
The municipality says the number of closed businesses is believed to be higher because many companies do not follow legal bankruptcy procedures when closing down.
Municipality data show some 19,066 small businesses operated in Tirana at the end of 2009, compared to 6,424 medium-sized businesses and 552 VIP businesses.
Retail trade businesses make up the biggest number with 6,953 units reported in December 2009, 856 more than in September 2008.
However, the municipality says the increase in retail sector could be fictitious because of the considerable number of closed businesses which continue being registered as a result of unpaid taxes.
Wholesale trade holds a considerable part with 38.85 percent of the whole market. In general, businesses buy from local wholesalers but are even supplied directly from the international market, said the report. Some 70 percent of their sales go to the local market and 30 percent to other cities, making Tirana the most important trade center.
Entertainment businesses rank second with a total of 4,107 bars, restaurants and gambling places, 827 units less than in 2008.
Third come service businesses with 4,275 units.
The service sector, which includes independent professionals such as notary publics, legal consultancy firms, small medical clinics, handicrafts internet and telecommunications is very important for the economy of the Tirana making up some 28 percent of total businesses. Their number in 2009 was 4275 units, 476 less than in 2008.
Production businesses ranked fourth in 2009 with 1,364 units, 433 less than in 2008.
The construction sector was the hardest hit by the global economic crisis in 2009. The number of companies operating in this sector dropped to 1,143, some 340 less than in 2008.
The report said citizens in 2009 were more reluctant to buy new apartments because of falling revenues and especially a sharp decrease in immigrant remittances. This is confirmed even by data of the Albanian Association of Constructors which say some 4,000 apartments remain unsold because of falling purchasing power. Construction, whose activity in the last quarter of 2009 shrank by 14.4 per cent compared with same period of 2008 and 11.8 per cent from the third quarter of 2009, suffered from lack of liquidity, according to INSTAT data.
The “Kavaja” street ranked first for its number of businesses with 1,262 followed by the “Myslym Shyri” street with 624 business units.
The Albanian economy saw a significant decline in its growth rate in 2009, from 7.9 per cent in 2008 to an estimated 3.3 per cent in 2009, but remained one of the few European economies which did not suffer a recession.
