Overall January to September deficit surpasses 1 billion euros
TIRANA, Jan. 6 – Albania’s current account deficit increased to 331 million euros during the third quarter of 2009, up 30 percent from the 231 million euros that it had been a year ago, the Bank of Albania said this week.
The total volume of incoming and outgoing transactions was 2.7 billion euros, or about 7 percent higher than a year ago, according to the central bank report.
The third quarter figures, the latest available at this time, mean that from January to September 2009, the current account deficit rose to more than 1 billion euros from 861 million euros that it had been in the same period of 2008.
The current account deficit reflects the fact that Albania continues to purchase more goods and services from the world that it actually sells.
It is a continuing trend and economic experts say that at this point Albania has the highest current account deficit in Europe when the GDP is factored in. And the deficit is continuing to grow.
The major factors in the figures for last year included the foreign currency loans that the country’s government took to finance domestic projects and the sale through privatization of several public companies.
But the higher deficit was also caused by a decrease in the income to migrant workers, which means fewer remittances, as well as a fall of in exports due to less demand in international markets as a result of the economic crisis, according Albania’s central bank.
Although there was an increase in services provided to tourists visiting from abroad, it was not high enough to be of much help in the account deficit, the Bank of Albania report said.
The number of foreigners who came to Albania in 2009 saw a considerable increase and tourists spent more money during the days they spent in Albania, but the problem was that the duration of their stay was significantly reduced, a trend that means they were trying to save money.
The report said that the third quarter, which includes the peak of the tourist season, “recorded a considerable increase in the number of non-resident travelers who visited Albania and an increase the average daily expenditure, but the duration of stay declined compared to a year ago.”
And the vast majority of these non-resident tourists were from Kosovo, which saw higher numbers this year, thanks in part, the central bank says, to the easier travel opportunities of the brand new highway linking Albania’s coast to the Kosovo border, the Durres-Kukes Highway.
