Once the second most important destination of Albanian exports, crisis-hit neighbouring Greece now ranks the seventh most important destination with exports in the first four months of 2013 at only 2.1 billion lek, down 38 percent compared to the same period last year
TIRANA, May 27 – At a time when domestic consumption, the key driver of Albania’s growth remains sluggish and lending has dropped to a historic low of 2 percent, exports which in the first four months of this year grew at double digits remain the only positive indicator of the Albanian economy in early 2013. Private investments and government spending, two other components of the GDP, also remain at low levels, hinting the Albanian economy will grow at around the same levels of 2012, when at 1.6 percent it registered one of the lowest GDP growth rates in the past two decades.
Data published by state Institute of Statistics (INSTAT) this week show Albanian exports in the first four months of the year reached around 74 billion lek (Euro), up 16.5 percent compared to the same period last year, with crisis-hit EU partners accounting for the overwhelming majority of 78 percent of total exports.
Meanwhile, imports continue remaining sluggish reconfirming the ongoing poor consumption in a net import country such as Albania. Imports in the first four months of 2013 dropped to 147 billion lek, down 7.3 percent compared to the same period in 2012 when Albania suffered severe weather conditions and a slight shrink in its quarterly GDP.
Exports to top trade partner Italy, the destination of more than half of Albanian exports, have stagnated in the first four months of 2013 reflecting poor demand by crisis-hit Italian partners who are the destination of more than 80 percent of garment and footwear exports. In January-April 2013 exports to Italy remained at exactly the same levels of 36.5 billion lek.
Spain continues strengthening its second top destination for Albanian exports, a position gained only in 2012, with exports in the first four months of 2013 almost doubling to around 11.1 billion lek, compared to 5.8 billion lek during the same period in 2012. Exports to China also grew to around 3.6 billion lek, up from only 1.2 billion lek in 2012. Neighbouring Kosovo ranked the third most important destination of Albanian exports in early 2013 with a total of 4.7 billion lek, up 20 percent compared to the first four months of 2012.
Once the second most important destination of Albanian exports, crisis-hit neighbouring Greece now ranks the seventh most important destination with exports in the first four months of 2013 at only 2.1 billion lek, down 38 percent compared to the same period last year.
Driven by a sharp increase in “minerals, fuels and electricity” and a recovery in “garment and footwear,” Albania’s exports are showing stability in early 2013, despite sluggish trade with traditional top trade partners Italy and Greece.
“Minerals, fuels and electricity” were Albania’s top exports in the first quarter of 2013, accounting for 21.3 billion lek or 40 percent of total exports and registering a 47 percent increase compared to the first three months of 2012. Second came the “garment and footwear” sector with 16.5 billion lek overcoming the negative growth rate since more than one year, and registering a 4 percent growth rate compared to the first three months of 2012.
Meanwhile, imports continue registering negative growth rates reconfirming the sluggish domestic consumption in a net import country such as Albania but positively contributing to the narrowing of the trade deficit. Imports of food, beverages and tobacco dropped by a sharp 10.5 percent to 19.5 billion lek in the first quarter of 2012 down from 21.8 billion lek in 2012.
At 20 billion lek, down 12 percent compared to the first three months of 2012, imports of “machinery, equipment and spare parts” continue registering negative growth rates revealing that private investments remain sluggish.
Affected by sluggish demand from crisis-hit EU partners, the destination of three-quarters of total exports, Albania’s export growth rate halved in 2012 while imports shrank unveiling the poor domestic consumption, which is the key driver of economic growth. INSTAT data show Albanian exports rose by 8.2 percent in 2012, down from 20 percent in 2011. In 2012, Albania exported 213 billion lek of goods (Euro 1.5 billion), up from 197 billion lek in 2011.
Minerals and fuels were the only products keeping crisis-hit Albanian exports growing at a moderate pace in 2012, at a time when the “garment and footwear” industry, until recently the top exporting industry shrank.
