The first month of 2025 has lowered the expectations of citizens and businesses regarding the economic situation.

According to a survey conducted by the Bank of Albania, respondents have not displayed the same optimism as in previous months, leading to a 0.8-point drop in the economic sentiment indicator.

By sector, the confidence index in the industrial sector has fallen by 4.7 percentage points. This decline is attributed to businesses’ lower assessments of their current activity and order contracts.

Confidence levels in the trade and construction sectors have also decreased. In trade, the decline is mainly due to expectations regarding prices and future employment, while in construction, it stems from current activity and uncertainty about future pricing.

On the other hand, citizens say they do not expect to make major purchases or see a significant increase in their household income this year.

The only sector maintaining optimism for the coming months is the services industry, which experiences peak activity during the summer season.

However, despite the overall decline in confidence across all economic sectors, the current confidence level remains 6 percentage points above the historical average.