Albania’s final consumption expenditure has declined over the past year, for the first time since 1990.
The COVID-19 pandemic was accompanied by a crisis, which changed the behavior of consumers, who restricted purchases to certain categories of goods, such as medicines and food.
According to INSTAT data, final consumption expenditure decreased by 2.34%, and this is closely related to job loss and uncertainty about the future.
According to INSTAT, the Albanian economy has experienced a recession at 3.31% during 2020, a year which was accompanied by the terrible consequences of the earthquake and the COVID-19 pandemic.
Despite expectations, the contraction of the economy results in lower levels than predicted by international financial institutions, which calculated recession from -6% to -9%.
The last three months resulted in an increase of 2.99% and the sectors with the most positive contribution to the economy were, construction, driven by the reconstruction process, but also health, which saw a significant increase in expenditures.
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