Imports to Albania decreased during the first quarter of 2022, despite their overall value being 28% higher than the same period last year.
This is a direct consequence of the current global crisis that has seen the price of goods soar as a consequence of supply chain issues and Russia’s war in Ukraine.
Data from INSTAT shows that 1,178 tonnes of goods were imported to the country during the first three months of 2022. This was a slight decrease on the same period the year before, yet the value increased by over 28%.
INSTAT looked at 90 different categories of goods and found that for 32 of them, there was a double-digit decrease in import quantities.
Some of the biggest declines were found in non-essential goods categories such as home furnishings and raw materials.
Imports of oil decreased by 11.8% and cereals by 4.1%. The amount of agricultural fertilisers also decreased by 75% during the same period, mainly due to restrictions on the purchase of potash, a key ingredient in producing fertiliser, mainly sourced from Belarus.
Food and tobacco imports were up 15% according to the data, as many suppliers rushed to stock up fearing more supply chain contraction as the war persists.
Meanwhile, government revenue from the same period is up 27%, bolstered by VAT revenue increases of 43%.
The situation could be described as stagflation—where businesses witness decreased demand but prices and inflation rise. The situation adversely impacts citizens who pay more for less, while the government gets considerably better off.
This could lead to Albanians being forced to reduce spending on non-necessary things such as holidays, clothing, or recreation.
