Wednesday, July 24, 2013

Business shrinks investments

Business shrinks investments
Recent official data show that the private businesses are investing less in economy. The Institution of Statistics reported that the import of machineries and appliances in June fell with 20% compared to last June.

The numbers show that this is one of the biggest drops. In total for the first six months, the Albanian busiensses have imported 11% less machineries and appliances than one year ago.

This is the fifth year when private investments have shrank. According to the International Monetary Fund, the domestic and foreign businesses invested 20.2% of the Gross Domestic Product in the Albanian economy.

This figure fell to 19.1% in 2012, while preliminary data for loan and import of machineries show that it could fall in another historic minimum. On March 2013, three months after the elections, the government approved a package of fiscal facilities.

Through a series of laws approved in series, the Parliament excluded from taxes every machinery and equipment in order to push businesses to invest more. Although its cost to the budget was 200 million EUR, but deepening the public finances crisis, numbers show that this has not stopped the fast shrinking of investments.

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