TIRANA, Jan. 18 – A moderate decline in the key services sector confidence contributed to a final quarter standstill in Albania’s Economic Sentiment Indicator, measuring both business and consumer confidence, the central bank said in a survey.
The services sector, accounting for about 50 percent of the GDP, saw its confidence drop by 4.1 percentage points in the final quarter of 2015, plunging below its historical average for the first time since the first quarter of 2014.
The services sector which includes hotels and restaurants, the booming call centers, and financial and consultancy services, was affected by a considerable deterioration in their perceptions over the general business situation and its financial condition. Prospects for the first quarter of this year appear pessimistic as the services sector expects the economic situation to further deteriorate.
The employment index for the service sector dropped by 9.9 percent compared to the previous third quarter in a situation apparently fuelled by the nationwide campaign against informality and tough penalties.
Corruption, the informal economy, and the legal and institutional framework are the key concerns for the services businesses, the central bank survey shows.
A modest recovery in the other industry, construction and trade sectors and the consumer confidence had a positive impact on the Economic Sentiment Indicator which grew by only a negligible 0.1 percentage points in the final quarter of 2015 to stand 2 percentage points above its long-term average.
The consumer confidence index grew by only 0.9 percentage points in the final quarter of 2015 fueled by pessimistic expectation of their financial situation in the first quarter of this year.
