Euro depreciation, Albanians are buying cheaper goods abroad

Euro depreciation, Albanians are buying cheaper goods abroad

A cheaper euro as opposed to the domestic currency, lek, has not only had negative effects for Albanians last year, but it also had positive effects on the economy. One of these effects is the purchase of goods from abroad at cheaper prices than before when the European currency was stronger in the currency market. To buy these goods, Albanian importers pay less than they used to before. Meanwhile, in the retail market, they’re sold for the same amount of money, securing them a higher profit margin. This is confirmed by the latest data released by the country’s office for statistics, INSTAT. According to these figures, at the end of last year, goods coming from abroad were cheaper than before.

“The Index of Import Prices fell by 1.5% in the fourth quarter of 2018 compared to the third quarter of 2017”, experts of INSTAT confirm. According to them, the biggest fall in price was registered by ready-made goods coming from abroad. “Prices for process industry have registered a fall of 1.8% compared to the same period a year ago. Price of processed food fell by 3.2% and this was the biggest contributory factor to this”, experts also explain. On the other hand, despite euro’s depreciation, cars and spare parts continued to be purchased at higher prices. “Prices for machinery and equipment have also seen an increase of 4.7%”, experts explain. On the other hand, two days ago INSTAT published a report stating that prices for goods made in Albania had seen a decrease at the end of last year.