Eurostat data show Albania’s total exports have more than quadrupled in the past decade, registering the highest growth rate among the nine candidate and potential candidate countries
TIRANA, May 21 – Albania has the highest trade exchanges with the European Union among all enlargement countries, but its share of exports and imports to the GDP ratio are among the lowest, according to a study by Eurostat, the statistical office of the European Union.
Data show the percentage of exports and imports as a share to the GDP is higher in all EU aspiring countries except for Kosovo, ranging from 14 percent in Montenegro to 42 percent in Macedonia, according to the Eurostat survey. Exports account for only 13.2 percent of Albania’s GDP, the lowest rate among the nine countries better only compared to Kosovo’s 6.9 percent. The situation with imports, which account for 39 percent of the country’s GDP, is the same with Albania having one of the lowest ratios among regional countries.
Eurostat data show Albania’s total exports have more than quadrupled in the past decade, registering the highest growth rate among the nine candidate and potential candidate countries. Data show total exports of goods climbed to 1.4 billion euros at the end of 2011 compared to a mere Euro 340 million in 2001, being higher only compared to Montenegro and Kosovo at the end of 2011.
Meanwhile, Albania’s imports at the end of 2011 reached Euro 3.8 billion higher than inMontenegro, Kosovo and Iceland.
Albania’s trade deficit at 2.5 billion euros was higher compared to Iceland, and neighbouring Montenegro, Macedonia and Kosovo.
Manufactured products are Albania’s highest exports with 56 percent of total exports followed by energy with 21 percent and raw material with 13 percent. The European Union is Albania’s main trade partner accounting for 72.7 percent of all exports and 64 percent of total imports.
The trade in goods plays a major role in the economies of the enlargement countries. Whereas the trade of the EU-27 has considerably suffered under the financial and economic crisis, that of the enlargement countries appears to have been less affected. The years 2010 and 2011 show a clear upward trend, largely surpassing the pre-crisis trade levels, says Eurostat.
Looking at the 2011 exports by product groups, it appears that ‘Other manufactured products’ is the most important category for all enlargement countries, except for Croatia, where ‘Machinery and vehicles’ comes first. This category of goods accounted for almost 55 % of all goods exports by Albania and Kosovo, just over 50 percent of exports from Montenegro and around 45 % of exports from the other enlargement countries.
The EU remains the main trading partner of all the enlargement countries. This is particularly true for Iceland and Albania, where more than 70 percent of all goods exported were destined for the EU.
Albania, EU aspirants
At 1.6 percent in 2012, Albania registered its lowest annual GDP growth rate since the collapse of the notorious pyramid schemes in 1997, and almost half of the average growth rate during the global crisis year from 2009 to 2011. However, the Albanian economy continued remaining one of the best performing among EU-aspirants despite its growth rate slowing down even compared to the onset of the global crisis in 2009 when at 3.3 percent it became one of the few regional economies to register positive GDP growth rates.
The latest quarterly report published by the European Commission Economic and Financial Affairs Directorate-General shows the Albanian economy performed better than most aspiring EU countries expect for Turkey and Kosovo and was on par with Iceland in 2012.
Macedonia, Montenegro, Bosnia and Herzegovina, Serbia and Croatia plunged into recession in 2012 after having recovered in 2011.
While Albania’s unemployment rate at 13.3 percent, inflation rate at 2 percent, the budget deficit at 3.4 percent of GDP are among the best in the region, the current account balance at 10.5 percent of the GDP and the ratio of non-performing loans at 22.8 percent are the highest among the nine EU candidate and potential candidate countries. Albania’s public debt at 61.5 percent of the GDP at the end of 2012 was the highest in the region along with Serbia at around 60 percent.
At 96 percent, Iceland has the highest public debt levels among EU aspirants.
Purchasing power at 30% of EU 27
In late 2012, the statistical office of the European Union, Eurostat, revised downward Albania’s GDP per capita expressed in purchasing power standards (PPS) ranking the Balkan country on the bottom of the 37-country list on par with Bosnia and Herzegovina. In its latest report, Eurostat ranked Albania’s GDP per capita in PPS at 30 percent of the EU 27 average, down from 31 percent in mid-2012 based on revised purchasing power parities, and the latest GDP and population figures. Back in 2009 and 2010, Albania’s GDP per capita in purchasing power standards, an artificial currency unit that eliminates price level differences between countries, stood at 28 percent and 27 percent respectively.
At 70 percent below the EU 27 average, Albania’s 2011 GDP per capita is also 5 to 22 percent below regional EU candidates Serbia, Macedonia, Montenegro and Turkey and 31 percent below acceding Croatia.
