Food imports widen the trade deficit

TIRANA, May 4, 2008. The
first quarter of 2008 has provided
additional evidence that
the Albanian economy is so far
unable to reduce its trade deficit.
According to data released
by the Albanian Institute of
Statistics, last year Albania
imported goods worth Euro
764 million and exported
some Euro 203 million. For
the period January-March
2008, exports covered only
27.6 percent of imports and
the trade deficit reached Euro
560 million. Imported products
experiencing the largest
growth, compared to 2007,
were food, beverages, and tobacco.
During the period January-
March 2008, Albania imported
food and beverages
totaling nearly Euro 150 million
compared to Euro 109 million
imported during the first
quarter of 2007. However, Albanians
are not consuming
more than they did a year ago.
Rather, the increase is due to
rising food prices in the world
market. However, there is some
small consolation. The group
that experienced the second
largest growth was machinery,
equipments, and spare parts.
For the first quarter of 2008,
Albania imported machinery
and equipment worth Euro 172
million compared to only Euro
138 million imported in January-
March 2007.
Albania has increased exports
continuously during the
last ten years. Nevertheless, the
Albanian economy is continuing
to underperform compared
to similar countries in the region
such as Macedonia, Bosnia and
Herzegovina. For example, during
2007 Albania exported
goods and services worth some
Euro 786 million, or 20 percent
more than in 2006. But, in 2007,
Macedonia exported three times
more, and Bosnia and
Herzegovina exported 4.5 times
more, than Albania. Albania has
managed, so far, only to surpass
Montenegro with its population
of just 800,000 people.