Albania’s total trade for 2010 amounted to ALL 641.2 billion representing an increase of 20% as compared to 2009
TIRANA, April 18 – Figures for 2010 show that Albania recovered from the crisis and that it is reaching its usual pace of trade flows, according to a report by the Albanian Centre for Competitiveness and International Trade (ACIT) supported by USAID. The decline of the trade deficit is a good sign for Albanian economy, especially related to export growth rate which was at outstanding levels in 2010, says Gentian Elezi, the executive director of ACIT.
Although Albania has a limited integration into global markets (having a low degree of openness as measured by trade flows relative to GDP), the global financial crisis was transmitted into the economy through several channels such as the withdrawals of bank deposits in the fall of 2008, the recession in trading partners (particularly Greece
and Italy) and the drastic fall of remittances. However, growth continued during 2009 by a rate of 3.3 percent in real terms, being supported by monetary policies (use of liquidity buffers to compensate for deposit withdrawals; liquidity injections by the Bank of Albania and the cut of interest rates) and fiscal policies (use of considerable fiscal stimulus). Growth also continued in 2010 and some macroeconomic balances (such as fiscal balance and current account balance) improved. Latest INSTAT data show the 2010 GDP growth rate was at 3.9 percent, 0.2 percent below government’s expectation but higher than the 3 percent forecast by international financial institutions.
Albania’s foreign trade flows dynamics during 2010 were characterized by a visible recovery from the 2009 slowdown, showing an improvement of both imports and exports growth rates. This recovery in trade flow development was observed since the beginning of 2010, especially in export dynamics. Albania’s total trade for 2010 amounted to ALL 641.2 billion representing an increase of 20% as compared to 2009 (534.5 billion ALL). Imports volume, as being the largest part of the trade volume, is the element determining its dynamics. Imports for 2010 reached at 480.2 billion ALL, representing an increase of 11.4% as compared to 2009 (431.1 billion ALL). During the course of 2010, exports volume (expressed in ALL) have confirmed and deepened the positive trend of the end of 2009.
Total exports in 2010, amounted to 161.009 million ALL and increased by 55.7% as compared to 2009. The most important increase of exports was concentrated during the first half of 2010. The recovery continued in the second half of the year. This trend has continued for exports in January and February 2011. This increase is due mainly to metals and electrical energy export and also to the fact that the key sectors have improved their performance.
Albania trade deficit at the end of 2010, amounted to 319 billion ALL and decreased by 2.6% as compared to 2009. The boost of exports is a main factor in this positive performance of the trade balance.
Albania’s trade structure has experienced some change as compared to 2009. Exports represent 25.1 percent of the total trade flows during 2010. This percentage has increased by almost 6% from 2009. Total trade flows experienced an increase of 20.0 percent as compared to 2009. These changes were caused by the increase of both, exports and imports’ flows.
Some of the sections that have experienced highest exports’ increase as compared to 2009 are main metals, mineral products, oil, electrical energy, leather products, and munitions. The only sections that account decrease in export flows are chemical products and plastic products. Footwear products, being a significant sector and accounting for almost 16 percent of total exports, have also experienced an increase by 26.7 percent of export flows. While textile products have increased only by 7.1%.
Some of the sections that have experienced highest increase of imports as compared to 2009 are footwear products, prepared food, leather and wood products
Textiles, mineral products, base metals and footwear remain important sections with high shares to overall exports (more than 80%). Differently from previous years, the section with the biggest share in total exports is mineral products with almost 28% (including oil and electrical energy). Textiles products account for 18.8 percent of total exports in 2010.
Agricultural products exports reached 9.3 billion ALL, having increased by 24.2%, in 2010. Like other sectors, agricultural exports experienced decrease in 2009, but kept a very positive trend during 2010. Therefore the share to total exports of the country has increased further reaching at 5.8% percentage points while the imports’ coverage ratio went to 10.7%.
Trade flows of electrical energy were valued at 22.4 billion ALL having increased by 29.5% in 2010. This is mainly due to the increase of exports, which reached at 10.5 billion ALL in 2010, experiencing a 268% increase. Electrical energy was exported to Switzerland which accounts for 56% of total exports, Serbia (14,4%), the Czech Republic (14%) and Slovenia (12.2%).
