Retail sales growing by double digits unveil the Albanian economy has performed better compared to the first quarter of 2012 when the GDP shrank by 0.2 percent facing severe weather conditions and escalating spillover impacts from crisis-hit EU partners
TIRANA, July 2 – Retail sales maintained their rising trend in the first quarter of 2013 when they grew by 13.7 percent year-on-year but shrank by 16.4 percent compared to the final quarter of 2012 when consumption is at its peak level due to the year-end holidays, according to INSTAT data. Retail sales growing by double digits unveil the Albanian economy has performed better compared to the first quarter of 2012 when the GDP shrank by 0.2 percent facing severe weather conditions and escalating spillover impacts from crisis-hit EU partners.
Data show the volume of “food, beverage, tobacco” retail sales rose by an average of 11 percent in non-specialized stores and by 17.5 percent in specialized stores compared to the first quarter of 2012. The biggest increase was registered in retail sales of garment and footwear which registered a 65 percent increase.
Retail sales of household appliances rose by 7.4 percent while sales of books, newspapers shrank by 7 percent year-on-year.
The “trade, maintenance, repair of motor vehicles” rose by an average of 16 percent year-on-year in the first quarter of this year. Within this group, the retail sale of fuel rose by 21 percent.
Data published by the country’s Institute of Statistics show retail sales ended their negative growth rates in the third quarter of 2012 when they grew by a mere 0.2 percent year-on-year and 10 percent compared to the previous second quarter. In the final quarter of 2012, retail sales grew by 5.5 percent year-on-year.
Foreign direct investment, migrant remittances and tourism revenue all registered negative growth rates in the first quarter of this year, unveiling a gloomy picture of the Albanian economy in early 2013 when a double digit increase in exports was the only positive indicator.
While the country’s Institute of Statistics (INSTAT) is scheduled to published the GDP performance for the first quarter of 2013 early in July, indirect data on consumption, private investments and government spending as well as exports and imports hint of sluggish performance. In addition, bad loans having reached a record 24 percent and public debt standing at around 62 percent of GDP, lending striving to remain at positive growth rates, business and consumer confidence remaining poor and top trade partners Italy and Greece continuing facing severe crisis impacts make things harder.
The value added tax, an indicator indirectly measuring consumption, shrank by a sharp 9.7 percent in the first three months of 2013, unveiling the consumers’ poor consumption and saving trend also shown by a moderate increase in deposits fearing harsher times ahead.
