Final data on economic indicators of enterprises in 2023 point to a restructuring of the economy from manufacturing to services.

Although the country's economy grew by 3.94 percent during 2023, employment in the business sector increased by 2.2% while sales revenue increased by 0.7%, the lowest level since 2020, when businesses were closed due to the pandemic.

The exchange rate, with the euro's depreciation against the lek, has significantly reduced sales revenue for manufacturers.

According to INSTAT, in 2023, there were 117,292 active economic enterprises in various sectors of the economy, marking an increase of 3.4%, compared to 2022.

Enterprises in the production of goods contributed 0.3 percentage points to the number of enterprises; 0.4 pps in the number of employees and 2.6 pps in net sales.

Enterprises in the service producers have contributed with 3.1 percentage points in the number of enterprises; 1.8 pps in the number of employees and 3.2 pps in net sales.

The Services sector and the Construction sector have contributed with 1.6 pps and 0.7 pps respectively to the 0.7% increase in total net sales. Enterprises carrying out commercial activities have occupied the highest percentage of the number of enterprises with 35.7%. The total number of employees in 2023 was 559,922, increasing by 2.2%, compared to 2022.

Service producers carrying out their activity in the trade, accommodation and food service, transport and communication and other services sectors occupy 65.2% of the total number of employees.

Producers of goods operating in the extractive industry, manufacturing industry, energy, water, waste treatment, and construction sectors account for 34.8%.

Net sales in 2023 reached Lek 3,381 billion, marking an increase of 0.7% compared to 2022. Service producers account for the largest share of net sales realized, constituting 67.5% of total net sales. Net sales per employee for 2023 were Lek 6,039 thousand from Lek 6,131 thousand per employee resulting in 2022.

Goods production enterprises, which include the sectors of extractive industry, processing, electricity, gas, water, and waste management, as well as construction, account for about 32.5% of net sales.

87.2% of active enterprises operate in service providers, which achieved 67.5% of net sales. In this group of enterprises, trade plays the main role (which includes wholesale, retail, and vehicle repair).

35.7% of enterprises operate in trade, which achieves 45.5% of total net sales. The trade sector contributed 0.7 pps to the annual growth of 0.7% in net sales. Employees in trade account for 24.5% of the total number of employees.

During 2023, enterprises with 50 or more employees accounted for 40.6% of the total number of employees, which achieved 46.9% of net sales, although they only accounted for 1.2% of active enterprises. Enterprises with 14 employees account for 28.0% of total employees, which have achieved 15.4% of net sales and constitute 86.1% of active enterprises.

The results show that enterprises with 50 or more employees have contributed negatively with 0.3 pps to the annual change in total net sales. Enterprises with 14 employees have contributed with 1.6 pps.