Page 34 - SE Outlook Regions 2023

2.1.4 Industrial production
Industrial Production (volume) Index (IPI) is designed to measure
quarterly changes in the volume of industrial production.

Albania’s overall Industrial Production (volume) Index (IPI) has
increased since the lockdowns at the start of the pandemic, though
progress has varied. The overall index reached 122 (above the 2015
level) in Q2, the latest data available, compared to 79 in Q1 2020 and
80 in Q2 2020.

The manufacturing sector rebounded particularly strongly, though it is
not clear whether this will continue into the end of 2022 and start of
2023, given higher input prices and the slowdown in EU economies,
which are among Albania’s main export markets.

Construction also demonstrated a robust recovery from the pandemic,
but its performance dipped somewhat in early 2022. Part of the impetus
for growth in this sector will be lost as post-earthquake reconstruction is
completed; however, the government has ambitious infrastructure
construction plans for the coming years.

The performance of the ‘electricity, gas, steam and air conditioning
supply’ sector has been more erratic. Albania produces almost all its
energy from hydropower and output depends on weather conditions;
the dry spring and summer in 2022 caused production to fall.

34 SE Outlook 2023 www.intellinews.com