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Spartak Ngjela warns of a major turning point in Albanian politics

Spartak Ngjela warns of a major turning point in Albanian politics
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Ekonomia

Consequences of isolation, 38 percent of businesses in the country are closed, consumption and profit are reduced for companies that still operate

Consequences of isolation, 38 percent of businesses in the country are closed,

After the restrictions were lifted, 38% of businesses in the country did not resume their activities. The crisis in the economy caused by the pandemic and the restrictions to curb its spread have negatively affected the activity of businesses, where many of them are not able to recover even after the opening of the economy. This is also shown by the data published by the Tax Directorate on its official website. According to these data, the period after isolation has cost Albanian businesses large losses up to bankruptcy, especially small ones. Specifically, from May to the end of December 2021, 38% of businesses in the country were closed, ie 1800 more than the previous year and most of them were small businesses. "Data on entities that have passed into passive status, show that from May 1, when the gradual lifting of restrictions began, until December 31, entities that have passed into passive status have increased by 38% compared to the same period a year ago. There are a total of about 6,600 entities that are added to the list of passive entities in the period in question, from about 4800 for May-December 2019 ", it is stated in the report published by Taxes. According to Taxes, the capital has not escaped the crisis either, where about 40% of the entities registered in the country operate. The number of businesses that have passed the passive status in Tirana has increased by 35% for the period under review. Even there the losses were greater because even the easing of restrictions was slower and the risk of coronavirus infection much higher. As we recall that the biggest problem that brought staff reductions was the suspension of transport. Tax data show that in all regions,

Consumption decline very high

According to Tax data, companies that continue to operate in the market are suffering a significant decline in consumption. Most small businesses show that from week to week there is a contraction in consumption, because customers feel insecure and spend only on basic things, or even on the schedule restrictions that still follow. Closing businesses, of course, has led to rising unemployment. Figures referring to the administrative data of officially declared salaried employees show that the number of employees has decreased by almost 30 thousand people during the 9 months of 2020, compared to the same period of 2019. Meanwhile, it can be seen that out of the total of 29 thousand 600 people, who have lost their jobs during a year, over 10 thousand belong to the private sector, 17 thousand to the agricultural sector and 1600 people, state sector for the unemployed in the agricultural sector, administrative data refer to the Labor Force Survey. The figures are expected to be even higher if we take into account that there are still unemployed and many citizens working in the black. Because, in the first 6 months, according to administrative data, but also those from the survey, about 50 thousand people became unemployed, as a result of severe quarantine, which forced the closure of hundreds of businesses and the blow that exporters received from the fall of orders by their partners abroad. While in the third quarter, administrative data show a weak recovery, where 30 thousand people are still out of the labor market. Even these data show that the highest number of layoffs is registered in the tourism sector.