Albania’s growth higher than expectations even in the second quarter

The Albanian economy grew by 4.06% in the second quarter of this year.

According to the Institute of Statistics, so far production growth is higher than the projections of the Albanian government and international institutions.

The average growth of the first two quarters was at 4%, while forecasts for this year put growth near the range of 3.7 to 3.8%.

However, growth remains to be tested in the remainder of the year, when the effect of the electoral stimulus in the economy has passed.

Even in the second quarter of the year the construction sector was the main contributing factor.

Production of this sector increased by 22.7% compared to the previous year, while contributing almost half of the economic growth realized in the first quarter.

The very high share of construction in the first two quarters indirectly proves that election expenditures have strongly influenced economic growth.

In addition to the constant contribution of major energy projects, in the first half of the year there was a significant increase in public spending and especially of investments.

This effect can be ascertained also by looking at growth according to the cost method, where investments or the formation of fixed capital increased by 14.3% compared to the same period last year.

Among the other important sectors in the economy, high growth was also recorded in the industry segment, which includes industry and energy, by 6% compared to the previous year.

A positive impact is estimated to have stemmed from the extractive industry, but the processing industry has also benefited from increased money circulation and consumption.

High growth rates have also been recorded in the financial sector. According to INSTAT, production in this segment has increased by 10.6%.