Albania's economy contracts by 0.6% y/y in Q2 2014

By bne IntelliNews October 7, 2014

Albania's economy contracted by 0.6% y/y in non-adjusted terms in the second quarter of 2014, reversing a 1.7% y/y increase in the previous quarter, the state statistical institute, INSTAT, informed. In quarterly terms, however, the economy posted a 0.4% growth from Q1, when it edged up by 0.1%.

The annual decline came as most of the economic sectors shrank in Q2 2014. The industry contracted by 1.3% y/y in the second quarter, swinging from a growth of 9.9% y/y and 9% y/y in the previous two quarters. The decline was exclusively on account of the manufacturing extracting industry, which saw a 6.6% y/y drop that was unable to be offset by a 7.6% y/y expansion in the extracting industry.

The annual decline in the construction sector deepened 22.4% in Q2 from 4.4% Q1.

On a positive sign, the agriculture output grew by 3.2% y/y, speeding up slightly from 3.1% y/y the quarter before.

Among services, which in aggregate advanced by 3% y/y, the retail trade and post and other services grew by 7.1% y/y and 4.6% y/y, respectively. On the other hand, the transport sector registered a 23.1% y/y drop and post and communication witnessed a 1% y/y fall.

GDP breakdowns in constant prices (%, y/y)     
  Q2/13 Q3/13 Q4/13 Q1/14 Q2/14
Agriculture, hunting, forestry, fishing 0.4 2.2 1.6 3.1 3.2
Industry 17.4 -3.0 9.9 9.0 -1.3
Construction 20.0 -11.0 2.0 -4.4 -22.4
Trade, hotels, restaurants -0.3 -4.1 3.1 3.3 7.1
Transport -7.9 -5.8 -29.0 -24.9 -23.1
Post and communication -10.8 -10.1 6.5 3.7 -1.0
Other services -1.3 0.9 1.9 1.2 4.6
GDP 3.6 -2.3 2.2 1.7 -0.6
Source: INSTAT          

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