An Overview of the Construction Sector in Albania

Abstract

The Construction sector during the last decade has turned out to be an important pillar and one of the most dynamic sectors of the Albanian economy, comprising an average of 10% of GDP and above during this period. Mostly the construction activities are focused in the major urban centers of the country. In the last two years insufficient domestic demand and higher financing costs caused a slowdown on this sector of the economy causing the investment pace to relatively slow down, compared with the previous years. In this paper we will try to give an overview of the construction sector in Albania during the period 2002-2012 by focusing mainly on the contribution share this sector has had on GDP throughout the years and it Gross Value Added, the effect this sector has on employment rates, building permits and their value on periodical basis. After making a thorough literature revising we will give our own insights upon the trend this sector has had and its current and prospective role it will have in the Albanian economy.