Imports of machinery, equipment and spare parts, an indicator also measuring business investments dropped by 9 percent to 81 billion lek (Euro 567 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.
TIRANA, Dec. 24 – Albania’s exports growth slightly slowed down to 15 percent in the first 11 months of 2013 but continued remaining the key driver of Albania’s sluggish growth during this year at a time when domestic consumption and private investments remain at negative growth rates.
Data published by the country’s state statistical institute INSTAT show exports slowed down to 15 percent in the first eleven months of this year, down from 16 percent in the first nine and ten months of 2013, affected by a slowdown in exports of “minerals, fuels and electricity” which since 2012 have emerged as Albania’s top exports overcoming even traditional garment and footwear exports.
Exports of “minerals, fuels and electricity” rose by a record 31 percent to around 91 billion lek (Euro 639 million) in the first eleven months of this year ranking the top Albanian exports. Meanwhile, exports of garment and footwear products, the traditional top Albanian exports until 2011, have overcome the 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 11.5 percent to around 64 billion lek (Euro 448 million) in the first eleven months of this year, overcoming the slight decline in 2012.
Data show crisis hit Italy and Greece continue remaining Albania’s top trade partners. In the first eleven months of 2013, 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 fifth most important destination of Albanian exports after Spain, Kosovo, China and Germany 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.
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.
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 the first eleven months of this year, imports dropped by 5 percent to 457 billion (Euro 3.2 billion).
Imports of machinery, equipment and spare parts, an indicator also measuring business investments dropped by 9 percent to 81 billion lek (Euro 567 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.
