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          

Related Articles

Albanian PM says new government to get rid of “parasites” in administration

Dismissing "parasites" in the public administration will be the priority of the Socialist-led government during its second mandate, Albanian Prime Minister Edi Rama has said, ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

First female party leader elected in Albania

Albania’s third largest party, the Socialist Movement for Integration (LSI), elected Monika Kryemadhi as its new leader on July 5. Kryemadhi will be the first woman to lead a political party in ... more