Exports grow by 35% in January

TIRANA, Feb. 27 – Fuelled by a sharp increase in “minerals, fuels and electricity” and the recovery of crisis-hit garment and footwear products, Albanian exports registered a sharp 35 percent increase in January 2013 while imports shrank by 8 percent, positively contributing the trade deficit which narrowed by 32 percent year-on-year. “Minerals fuels and electricity” nearly doubled to 7.5 billion lek in January 2013 while garment and footwear products which had been registering continues declines in 2012 recovered to 5.4 billion lek, up 13 percent compared to January 2012.
However, imports in January 2013, shrank by 8.2 percent, unveiling the sluggish domestic consumption in a net import country such as Albania. Imports of “food, beverages and tobacco” dropped by 11 percent year-on-year in January 2013. The difficult situation businesses are facing is also revealed with their low investments as indicated by imports of “machinery, equipment and spare parts” which dropped by 13 percent compared to January 2012.
Exports to top trade partner Italy in January 2013 dropped by 11 percent. Exports to Spain, a new destination for Albanian exports, grew by a record six times to 5.2 billion lek in January 2013, accounting for around 29 percent of total exports. Exports to China also surged climbing to 1.2 billion lek, compared to only 136 million lek in January 2012.
The export/import coverage ratio in January 2013 reached 53.2 percent registering one of the highest historical monthly rates as imports continue shrinking while exports registered a considerable increase. Exports to Kosovo slightly dropped and shrank by 24 percent in crisis hit Greece in January 2013.
Affected by sluggish demand from crisis-hit EU partners, the destination of three-quarters of total exports, Albania’s export growth rate halved in 2012 while imports shrank unveiling the poor domestic consumption, which is the key driver of economic growth. Statistics show Albanian exports rose by 8.2 percent in 2012, down from 20 percent in 2011. In 2012, Albania exported 213 billion lek of goods (Euro 1.5 billion), up from 197 billion lek in 2011.
Minerals and fuels were the only products keeping crisis-hit Albanian exports growing at a moderate pace in 2012, at a time when the “garment and footwear” industry, until recently the top exporting industry shrank.