Albania’s economy expands by 2.98% y/y in Q3 2015

By bne IntelliNews January 11, 2016

Albania's economy expanded by an annual 2.98% in the third quarter of 2015, accelerating from a 2.53% y/y increase in Q2, the statistics institute INSTAT said on January 11.

The World Bank recently downgraded its projection for Albania’s GDP growth in 2015 by 0.3pp to 2.7%. Albanian economy is expected to grow by 3.4% in 2016, according to the World Bank projection, which is in line with the government forecast.

The economic growth in Q3 was driven mainly by the construction sector, which contributed with 1.45pp, followed by the sector of professional, scientific and technical services as well as the public administration, education and health sector, which contributed by 0.53pp and 0.51pp, respectively. The agricultural sector contributed negatively, by -0.28pp.

The construction sector posted the biggest growth rate, of 16.54% y/y, followed by professional, scientific and technical activities (+10.34%) and the information and communication sector (+7.37%). Meanwhile, the sector of arts and entertainment, as well as financial activities and insurance sector, showed the biggest declines, by 3.34% and 2.63%, respectively. The farming sector fell by 1.4% y/y.

In the third quarter, Albania's economy expanded by 0.94% from the previous quarter.

In terms of its main components, gross fixed capital formation rose by 12.58% y/y in Q3. Household final consumption, which accounts for an important part of the total economy, increased by 1.9% y/y, while general government consumption fell by 1.88% y/y.

Economic sectors  GDP growth y/y change

Q2 GDP

Q3 GDP 

Agriculture, forestry, fishing

-0.76%

-1.4%

Extractive industry, manufacturing, energy and water supply

6.28%

1.08%

Construction

24.49%

16.54%

Trade, transport, hotels

1.02%

1.52%

Information and communications

0.22%

7.37%

Financial activities and insurance

4.43%

-2.63%

Real estate activities

0.34%

5.29%

Professional, scientific and technical activities

-0.3%

10.34%

Public administration, education, health

4.17%

4.70%

Arts, entertainment, recreation

-0.79%

-3.34%

Net taxes

-5.12%

-0.14%

Related Articles

Albania wants to attract more US defence sector investments

Albanian Defense Minister Olta Xhacka said that Tirana wants more investments by the US military industry in Albania, after a US company launched work on the installation of the Integrated ... more

Bulgaria’s Borissov appeals to Western Balkan leaders to preserve peace

Boyko Borissov, prime minister of the current EU Council chair Bulgaria, called on April 10 on the leaders of the Western Balkan countries to preserve peace and ... more

Albania's second airport to open in autumn 2018

The idled airport in the northern Albanian city of Kukes is expected to start operations by this autumn, Prime Minister Edi Rama said on April 6.  Albania’s air transport sector is on the ... more

Dismiss