Tirana, February 5, 2015/ Independent Balkan News Agency
In 2014, Albanian economy registered a lower than projected deficit. Inflation also saw a drop, while for the first time in the recent years, remittances saw a growth.
These data come from the Bank of Albania, which published today the Monetary Policy Report for the fourth quarter of 2014.
According to the report, the quantity of secondary revenues grew by 3%, while the annual increase of remittances from migrant workers is 1,9%.
“Net incomes in the capital account grew by 20,7 million Euros, as opposed to 15 million Euros during the third quarter last year”, says BoA.
As far as economic growth is concerned, BoA says that in the last months of the year, growth was around 2,1%.
The economy contracted temporarily in the second quarter and grew 3.3% in the third quarter.
On the demand side, the domestic private demand supported the economic growth, whereas public sector and external demand did not contribute to the growth.
In 2014, the Bank of Albania deems that the Albanian economy recorded a higher growth compared to the previous year, albeit economic activity at home continued to remain below potential.
According to BoA, from 2015 and onwards, economic activity is expected to register improvements.
BoA says that unemployment went down by 0,3%, remaining at a level of 17,4%.
Lending for the economy went up by 3,8%. Another positive and sustainable development relates to the significant growth of lending in Lek, as opposed to a weak performance of lending in foreign currency.
Lending in ALL increased by 9,3% in annual terms in the month of November, while lending in currency contracted by 0,9% as opposed to last year.
Bank deposits saw an average annual growth of 1% in the month of October and November. In these two months, deposits in ALL grew by 5 billion ALL, thanks to the growth of business deposits. Deposits in foreign currency contracted by 5,5 billion ALL.
The region’s economy according to the Bank of Albania
The Italian economy remained in recession in the third quarter of year, recording the third consecutive quarter of negative growth. The low domestic demand, government spending and investments provided negative effects to economic activity, while the increase of external demand reduced somewhat this effect. By sectors of the domestic economy, agricultural production, industrial production and construction shrank, while services provided a neutral contribution.
Economy of Greece exited recession in the third quarter of year, recording a quarterly growth for the first time since the beginning of the crisis. The low comparative base of a year earlier drove to positive growth in almost all components of GDP. Thus, the increase in consumer spending, investments and net exports offset the contraction in government spending in this quarter. The outlook, however, remains unclear, due to the political uncertainty in the country.
Economic growth in Turkey continued to slow down in the third quarter of the year, reflecting the weak domestic demand. Consumer spending and private investments did not contribute to economic growth. The latter was driven by the high government spending and the rapid increase in exports. Net imports, contributing negatively to the economic growth, declined. Preliminary data of trade, industrial production and confidence indices suggest that economic growth was low in the third quarter of the year.
FYROM’s economy maintained the expansionary pace in the third quarter of the year. Total investments, mainly urged by government investments, were the main driver to growth. Net exports and consumer spending slowed down their increase, thus providing less contribution to the overall economic performance. By sectors, industrial production slowed down, while construction increased slightly after some quarters of stagnation. Indirect data from retail sales and production suggest a lower economic growth in the last quarter of the year. /ibna/
On the photo: A model of the central building of the Bank of Albania which is still undergoing reconstruction after many years