Citizens curb spending - BoA: While some sectors grow, uncertainty about prices and employment remains high
Confidence in the economy has declined during April, according to the latest survey published by the Bank of Albania, showing a mix of positive and negative developments in different sectors.
The economic sentiment indicator, which measures the overall climate in the economy, fell by 1.5 points in April. However, it remains about 6.4 points above the historical average, which indicates that the level of confidence remains relatively stable.
The decline in this indicator was mainly driven by weakening confidence in the services, trade and consumer sectors. In everyday life, this translates into businesses reporting less demand and citizens being more cautious with their spending.
On the other hand, not all sectors have moved in the same direction. Industry and construction have improved. In industry, businesses report increased production and more positive expectations for orders, including those from exports. Meanwhile, in construction, growth has been driven mainly by an improvement in current orders.
In contrast, the services and trade sectors have shown signs of weakness. Businesses in these sectors report falling demand and less optimistic estimates of sales performance. This may be related to a slowdown in domestic consumption.
Consumers themselves are also appearing more pessimistic. Their confidence indicator has fallen, reflecting weaker expectations about their personal financial situation and the economy as a whole, as well as less willingness to make large purchases.
At the same time, data show that price expectations remain a concern in some sectors, while the perception of unemployment has worsened.
Overall, the Bank of Albania's survey indicates an economy that continues to be above the historical average, but with clear signals of slowdown in several key sectors, especially consumption and services, which remain decisive factors for further economic performance in the country.
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