Revival of Consumption in Non-durable Goods Affects Economy

Revival of Consumption in Non-durable Goods Affects Economy

TIRANA, August 27

The consumer loans are increasing at satisfactory rates, in 2019. According to data by the Bank of Albania, at the end of June 2019, the portfolio of consumer loans reached the value of Lek48.4 billion, or around €400 million. Compared to a year ago, loans for individuals were raised by 5.5%. The highest increase was registered in the segment of genuine consumer loans, accorded for the purchase of nondurable goods. In the middle of this year, the portfolio of the bank credit for this purpose reached the value of Lek30.3 billion, an increase of 15% compared to the same period of last year.

The credit for genuine purposes of consumption makes up around 63% of the total of the consumer loans for individuals. The other part consists of credits for durable goods, which means the loan given usually for families’ investments in electronic equipment, furniture, or vehicles.

This segment of consumer loans has the value of Lek18 billion or around 37% of the total. The analysis of the Bank of Albania, confirms that the revival of the consumption in the private sector, as the most determining factor in the expansion of the national production for this year.
The rate of the annual increase in consumption in the Q1 of 2019 was 2.25%. The increase of consumer loans was one of the factors that have supported the expansion of consumption, besides the improvement of the work market, and the indicators of trust in the economy.


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