What are the two sectors where the most profit is being made in Albania?
2024-03-12 08:42:39
TiranaPost
Making a profit from starting a business is becoming more and more difficult. Competition has increased, consumption has been reduced due to high prices and the shrinking population from emigration, although it is being compensated somewhat by tourism.
Opening a neighborhood bar, once the favorite business of many, no longer pays as much as they are competing with the big chains.
The same thing with small markets, which no longer have as much business as consumers are buying more in supermarket chains. In the same line, small clothing stores are feeling the pressure of large shopping centers.
INSTAT data on income and profits show that the rate of profit in the economy in 2022 was on average 9.1%, with a slight decrease compared to the 9.3% that was this indicator a year ago.
While the trading businesses aren't doing so well, it seems the mental work is already paying off. "Professional services" was the activity that had the highest rate of profit in 2022, with a rate of nearly 33%. Out of 100 ALL income, entities that perform professional services earned 33 ALL. Compared to a year ago, the profit rate has increased by more than 8 percentage points.
The construction boom in recent years has added work for those in the real estate business. However, this sector has dropped to second place, from first in 2021. The profit rate was 24.7%, from 32% the previous year.
The development of technology has increased the openings for information technology experts, who had a profit rate of 26% in 2022, a slight increase compared to the previous year.
Although the order towards health clinics was lower in 2022, compared to 2020-2021 when their activity peaked as a result of the pandemic, again "health and social work activities" reported a profit rate of about 21%, down by 3 percentage points compared to the previous year.
The recovery of consumption after the pandemic, but also the arrival of foreign tourists have encouraged accommodation and food service activities, with rates of 20% and 18% respectively in 2022, with a significant increase of 4-5 percentage points compared to the previous year . Travel agencies also saw a rate increase of about 2 percentage points, but their return still remains lower, at about 8%.
Education is a business that has a profit rate of 15%, down slightly by one percentage point from the previous year.
The activities that earn the least are those of trade. If you engage in retail trade, according to INSTAT, you do not earn more than 7.2 ALL per 100 ALL engaged, while the previous year it was 8.2 ALL.
In the wholesale trade, the profit rate was stable at 5.7%. However, due to the high turnover achieved by this activity, the profits of wholesale trade are high in value.
The telecommunications sector, once one of the most profitable in the country, has resulted in a loss of about 11 billion ALL. The activity of water supply was also at a loss, amounting to -2 billion ALL.
All businesses operating in the country, in 2022, realized a total income of 3.5 trillion lek, or about 32 billion euros.
Of these 316 billion ALL, or almost 3 billion euros, were profits. The highest profits in value were made by wholesale trade activity, with 18% of the total, followed by construction (11% of the total total profits) and professional services (10.6%).
This article was published by Monitor Magazine and reposted by Tiranapost.al
