E fundit!

22:51 TODAY

Businessman Artur Shehu breaks his silence: I am a long-time land owner in Zvërnec, I don't know the investors at all

Albanian businessman Artur Shehu spoke on the Opinion show...

Business profits decreased in 2024/ Sectors with the highest growth and the strongest decline

2026-04-14 07:17:30, Ekonomi CNA

Business profits decreased in 2024/ Sectors with the highest growth and the

The net profit that all businesses realized in our country decreased in 2024. Although in modest ratios with only 1 percent less than in 2023, the value of profits in some sectors has decreased drastically according to economic indicators on enterprises that were recently published by INSTAT.

The sharpest decline in profits for energy and mining

The Electricity and Gas sector has taken the biggest hit in monetary terms. Its profits have shrunk by a record 34.2 billion lek, falling from 58.2 billion in 2023 to just 23.9 billion in 2024 (- 59%).

This decline is mainly explained by the stabilization of energy prices in international markets after the 2022-2023 crisis, which has reduced profit margins for exporters and domestic producers, as well as by increased network maintenance costs.

The Extractive Industry is positioned on the same curve, which has recorded a decrease in the value of profits by 112%, closing the year with a net loss of 717 million lek. This negative performance reflects the decline in global demand for raw materials and the decline in oil and mineral prices on international stock exchanges, putting domestic extraction operations at risk. Similarly, Metals and metal products saw a contraction of 1.4 billion lek (-19%), affected by the decline in demand in foreign markets and the increase in domestic costs.

Internal costs reduce profits in many sectors

Another group of sectors, advanced services and manufacturing, will see no decline in profits in 2024. Information services, which until yesterday were seen as the engine of innovation, have seen a contraction of 2 billion lek in profits, or an annual decline of about 13%. This is explained by the strong increase in labor costs, where the demand for higher salaries from IT specialists has reduced companies' profits.

Likewise, the Education sector has recorded a decline of 46%, a very high figure that reflects demographic challenges and youth emigration, which has reduced revenues for private educational institutions while maintenance and staff costs have continued to increase.

The textile and clothing processing industry continued to suffer the consequences of the exchange rate and the increase in costs from the minimum wage in 2024. Although the decline in absolute value of 163 million lek or 2% indicates a sector that is struggling for survival. Given that this sector receives revenues in euros and has expenses in lek, the strengthening of the local currency has eaten into their profits, forcing many businesses to operate with minimal margins or to review their business plans. The same logic applies to transportation and the chemical and plastic industry, which have been affected by the increase in fuel and raw material costs and wages, closing 2024 with significantly lower figures than the previous year.

Increased profits from post, telephony, construction, tourism

An interesting development comes from the Post and Warehousing sector, which has increased profits by 5 billion lek (or 47%) in 2024. Similarly, the Telecommunications sector has seen a 65% increase in profits, reflecting investments in the 5G network and increased service tariffs.

Professional Services resulted in the highest value of profits. This sector has seen an increase of 7.5 billion lek in net profit, reaching a total of 46 billion lek. This strong growth of 20% testifies to the strong demand of the economy for legal consultancy, accounting, engineering and management services, etc.

The construction sector continues its journey towards new records, with a profit increase of 4.2 billion lek (+9%). This sector is being fueled by continuous investments in public infrastructure and the residential construction boom, especially in the capital and the coast. In parallel, wholesale and retail trade have recorded solid growth of over 10 billion lek or 10% more, which indicates high consumption driven by tourism.

Regarding tourism, the figures confirm a positive year. Accommodation and Food Services have increased net profits by around 4.3 billion lekë. This increase of around 20% is attributed to the record number of foreign tourists, who have increased spending in hotels and restaurants, thus compensating for the increase in labor and food costs. /Monitor