Fuelled by a sharp rise in exports of “minerals, fuels and electricity,” Albania’s exports in 2013 rose by 15.6 percent to 246 billion lek (Euro 1.72 billion)
TIRANA, Jan. 28 – A double digit growth in exports was the key driver of Albania’s sluggish growth in 2013 at a time when domestic consumption and private investments registered negative growth rates.
Data published by the country’s Institute of Statistics show Albania’s exports grew by 15.6 percent in 2013, registering growth rates for the fourth consecutive year after the shrink in onset of the global crisis in 2009.
Fuelled by a sharp rise in exports of “minerals, fuels and electricity,” Albania’s exports in 2013 rose by 15.6 percent to 246 billion lek (Euro 1.72 billion). Oil exports by Canadian-based Bankers Petroleum were the key contributor to the positive performance of this group of exports which has emerged as Albania’s top exports for the second year in a row overcoming the traditional garment and footwear products. A double digit growth in garment and footwear exports also has a major impact.
Exports of “minerals, fuels and electricity” rose by a record 30 percent to around 100 billion lek (Euro 695 million) in 2013, ranking the top Albanian exports. Meanwhile, exports of garment and footwear products, the traditional top Albanian exports until 2011, overcame the slight shrink in 2012 fuelled by crisis impacts from EU partners despite difficulty in entering new markets. Garment and footwear exports, whose overwhelming majority of more than 80 percent has Italy as its destination, grew by 11 percent to around 70 billion lek (Euro 485 million) in 2013, overcoming the 3.2 percent shrink in 2012.
Meanwhile, imports continue their downward trend affected by sluggish domestic consumption as indirectly unveiled by the negative growth rates of VAT and excise taxes. In 2013, imports dropped by 3 percent to 512 billion (Euro 3.58 billion) on lower imports of “minerals fuels and electricity.”
A report published by the country’s state Institute of Statistics on the performance of exports during the 2008-2012 period shows that except for the slight decline of 6 percent in the onset of the global financial crisis in 2009, Albania’s exports registered strong double digit growth rates of 54 percent and 22 percent in 2010 and 2011 before slowing down to 8 percent in 2012.
Garment and footwear products were Albania’s key exports from 2008 to 2011 but were overtaken by exports of ‘minerals, fuels and electricity’ in 2012.
The International Monetary Fund estimates Albanian exports rose to around 34 percent of the GDP in 2012, up from only 29.3 percent in 2008.
Italy accounted for around half of Albanian exports and one-third of total imports. Neighbouring Greece which is suffering its sixth consecutive year of recession, now ranks the sixth most important destination of Albanian exports after Spain, Kosovo, China and Germany and Turkey with only 3 percent of the total and the second most important destination only for imports with around 10 percent. Spain has emerged as the second most important destination of Albanian exports mainly due to oil exports by Canadian-based Bankers Petroleum.
Imports of machinery, equipment and spare parts, an indicator also measuring business investments dropped by 3.7 percent to 94 billion lek (Euro 658 million), unveiling the poor confidence of the business community for new investments as the economy struggles with the lowest growth rates in the past 16 years.
In December 2013 when government introduced the 2014 fiscal package foreseeing tax increases for fuel and tobacco, imports rose by 15.7 percent.
Italy, Greece to escape recession
Albania’s top two trade partners Italy and Greece are expected to register positive growth rates in 2014, escaping their recession period, according to forecasts by Eurostat, the statistical office of the European Union, which is a positive signal for a further recovery in Albania’s exports. Italy, Albania’s top trade partner which is the destination of more than 50 percent of Albania’s exports, is expected to register positive growth rate of 0.7 percent in 2014 after being in recession in 2012 and 2013.
Meanwhile, Greece which still remains Albania’s second top trade partner is also expected to register positive growth rate of 0.6 percent in 2014 overcoming six consecutive years of recession, which has also considerably affected trade exchanges with Albania.
The two neighbouring countries account for around 50 percent of Albania’s trade exchange, being the top investors in Albania and the overwhelming source of migrant remittances.
