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Albanians are more pessimistic than ever about their expected family situation in the next 12 months, and expectations are even more negative than in April 2020, when the country was suffering the consequences of quarantine, as a result of measures to limit the consequences of the Covid pandemic. 19.
The sharp rise in prices at a time when their incomes are not rising is causing more and more families to anticipate difficulties with their finances in the future.
In the consumer confidence survey for March 2022, published by the Bank of Albania, the balance of responses was negative of -12.99, the most negative level ever recorded, since May 2016, when the Bank of Albania published the survey findings.
This level is even more negative than in May 2020 (from -8.2), when households were feeling the effects it had on the Covid- economy.
19 (see graph Family financial situation over the next twelve months).
Respondents are asked the following question:
How do you expect the financial situation in your family to change over the next 12 months?
1. It will improve a lot
2. It will improve
3. It will not change
4. It will get worse
5. It will get much worse
9. I do not know
Negative balance means that about 13% more respondents expect the financial situation in their family to deteriorate than those who expect it to improve.
Survey data show that by March 2020, households’ expectations for their future were generally positive.
After the pandemic, the balance of responses became negative for the first time, culminating in May 2020. With the opening of the economy, the indicator gradually shifted to positive, reaching its highest level in September 2021.
But with rising prices, more and more households began to be pessimistic, while the deterioration was very significant in March, coinciding with the significant rise in price of almost every product.
Not only are expectations negative. Consumers turn out to have seen the deterioration of the family situation in recent months. Balance of answers in March 2022 to the question “How has your family’s financial situation changed over the last 12 months?” is again negative (-16.08), among the historical lows.
Since October 2021, more and more families declare that the financial situation has deteriorated in relation to those who think that the situation has improved.
In fact, since March 2020, when the pandemic started, family members who think their situation has worsened in the last 12 months have prevailed over those who assess the opposite (Look graph: Family financial situation during the last twelve months).
The deterioration of family members’ assessments and expectations for their financial situation seems to i
significantly associated with rising prices. Since October, consumers are feeling the burden of
added to their budgets by rising prices.
The Consumer Confidence Index, measured by the Bank of Albania, addressed to individuals, among other things, the question: “How do you think prices have changed over the last 12 months?”: Have increased a lot, have increased moderately, have increased slightly , almost unchanged, are sitting ?.
Starting in October, the balance of responses shows that more and more consumers are feeling the significant rise in prices over the last four months (see chart: Prices over last twelve months, May 2016-March 2022).
The response balance in March was 37.5 (seasonally adjusted), which means that 37.5% more consumers think prices have risen than those who think they have fallen.
The indicator has increased significantly, compared to September which was only 0.57 and is the highest since May 2016, when the Bank of Albania started reporting data./Monitor
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