TIRANA, Dec. 13 – November was marked by a 9.1 percent decline in exports, as the value of Albanian goods sold abroad during this month was 25 billion lek. INSTAT reported that the annual decline deepened further, with the total value of exports during the 11-month period being 97 million euros less than that during the January – November period in 2018.
During this period in 2019, exports of goods reached a value of 277 billion lek, down by 4.1 percent since a year earlier, while imports of goods reached a value of 593 billion lek, up by 2.1 percent compared to the previous year. The trade deficit reached 317 billion lek, up by 8.2 percent compared to the same period in 2018.
According to INSTAT, the 4.1 percent annual decline in exports during the 11-month period was influenced by the ‘Textile and footwear’ industry group, the largest in the country, reaching 110.2 billion euros in export value, therefore indicating a 3.9 percent annual decline. This group accounts for 40 percent of total exports in Albania. ‘Minerals, fuels and energy’ was the second largest industry group, with a 14.45 percent decline, reaching 45.5 billion lek in export value during the 11-month period 2019, from 53.2 billion lek in 2018. The group accounts for 16 percent of the total exports in the country, but due to the drought in Albania the amount of energy exports was low in 2019. The ‘Building materials and metals’ group also contributed to the downward trend, down by 15 percent during the 11-month period. As a result, the group accounted for only 15 percent of the total exports in Albania from 17 percent in 2018.
Some masonry industry representatives claimed that several factors combined together have led to the shrinkage of the industry and the decline of exports. The first factor has to do with the depreciation of the euro, making entrepreneurs reluctant to purchase goods due to unfavorable prices. Issues with the workforce persisted as well, considering the massive immigration of Albanian citizens to Europe. Finally, the political climate also played a major part by creating an unfavorable business environment. As a result of political instability, many entrepreneurs have turned their backs to the possibility of investing in Albania, according to the masonry industry representatives.
On the other hand, the group with the highest increase in exports was that of ‘Machinery, equipment and exchange of parts’ (by 19 percent) during the 11-month period, accounting for nearly 7 percent of the total exports in Albania, followed by the ‘Food, drinks and tobacco’ group which witnessed an increase of exports by 9.2 percent.
The number of Albanian exports to several countries also increased in November compared to the same period in 2018. Precisely, exports to Spain increased by 37.8 percent, exports to Germany increased by 0.1 percent and those to Greece increased by 1.5 percent. Countries such as Italy, Kosovo and China imported less Albanian goods, declining by 12.8 percent, 9.6 percent and 10 percent, respectively. However, during the eleven-month period, Albania experienced the highest increase of exports to Kosovo (10.6 percent), Germany (5. percent), and China (11.1 percent).
