TIRANA, Sept. 30 – As expected, the growth rate of the economy was significantly slow in the first six months of the year considering that energy exports were responsible for almost half of last year’s growth. These exports were favored by rainfall and added more to the numbers as surpluses and growth of the economy reached a percentage of 4.06 in 2018, making it the highest of the last decade. However this year’s drought deflated the previous numbers. Economic growth was at 2.21 percent during the first quarter of the year and 2.31 percent during the second quarter, according to INSTAT.
The shutdown of gambling game centers and activity also contributed to this decline. All 14 companies licensed to practice gambling activities contributed to the economy with a total of 150 million euros per year, but as a result of the shutdown this amount no longer resulted in gross domestic product calculations.
The Services sector had the most positive effect, accounting for 0.71 percent of growth, driven by tourism and a record number of incoming tourists during this year. Other sectors which had a positive effect include: Public Administration, Education and Health by 0.42 percent, Agriculture, Forestry and Fishing by 0.41 percent. Sectors which affected the growth negatively were: Entertainment by -0.48 percent as a result of the gambling game activities being shut down, Process Industry; Electric Power and water by 0.23 percent due to the decline in energy production and construction by -0.15 percent mainly due to TAP.
Main sectors of economy during the second quarter of 2019 compared to the second quarter of 2018
Sectors of Agriculture, Forestry and Fishing increased by 1.78 percent while the Industry of Energy and Water declined by 1.89 percent. Industries of Energy and metal Production had some influence on economic growth as well, however with a decline of 27. 54 percent and 4.79 percent. Construction also declined by 1.75 percent, mainly affected by companies tied to the TAP project.
Commerce, Transportation, Accommodation and food Service rose by 4.75 percent through the influence of wholesale commerce which marked a 6.37 percent. The sector of Information and Communication showed an increase by 10.37 percent, Financial and Security activity increased by 13.92 percent, while Real Estate increased by 8.01 percent. Professional and Administrative services had a boost of 2.32 percent, Public Administration, Education and Health sectors increased by 4.05 percent while Art & Entertainment as well as other service activities declined by 19.35 percent. Net taxes on products increased by 4.15 percent.
