Private Consumption of the Economy 2009-2015

The following analysis from Open Data Albania is focused on the change in Private Consumption in the Albanian economy for the 2009-2015 period, and its dynamics in the first quarter of 2015.

The Gross Domestic Product (GDP) of an economy can be measured in different ways. One of these is the Expense Method.  The estimation of the GDP through this method includes the 4 main sectors of the economy: Families, Industry, Government and Foreign Sector. Since GDP measures the production of the whole economy, it can be estimated by summing the expenses made from these sectors.

Private consumption (also known as the families’ final consumption) includes the total expense for products and services from resident families for their individual demands.

Since 2009, the yearly change in private consumption is represented through the following graph:

Source: INSTAT
*2015 data for the first quarter
Comments and Analysis: Open Data Albania

During the first quarter of 2015, private consumption was 243.2 billion ALL (compared to 246.2 billion in the first quarter of 2014), resulting in a 1.2% decrease year-over-year.

This has reflected the transfer of financial resources to the payment of arrear obligations for the energy sector, and also the consumers’ attitude to saving. The fall in consumption was reflected mainly in the decrease of consumer spending in durables. On the other hand the expense for short term products and services has increased[1].

Private consumption has decreased the most in the third quarter of 2013 (2.3% yearly decrease), and had the greatest increase in the fourth quarter of 2010 (8.5% yearly increase). On average the yearly increase in private consumption in the last 5 years has been 1.6%.

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[1] Source: Monetary Policy Report, Bank of Albania

Download excel:Private Consumption of the Economy 2009-2015
Comments and Analysis: Open Data Albania
Contributed by: R.E