Albania’s top two trade partners Italy and Greece are expected to register positive growth rates in 2014, escaping their recession period, which is a positive signal for a further recovery in Albania’s exports
TIRANA, March 4 – Albania’s exports suffered a slight drop in January 2014 affected by a double digit drop in exports of ‘minerals, fuels and electricity’ which in the past couple of years have been Albania’s top exports. Data published by the country’s state statistical institute (INSTAT) show Albania’s exports dropped by 1.5 percent to 18 billion lek (Euro 125 million) while imports registered a slight 0.8 percent increase, unveiling signs of recovery in domestic consumption in a net import country such as Albania.
Garment and footwear exports were Albania’s top exports in January 2014, registering an 18 percent increase.
“Minerals, fuels and electricity” which in 2012 and 2013 were Albania’s top exports dropped by 18 percent year-on-year, affected by shortage of electricity exports.
Imports of machinery, equipment and spare parts, slightly rose by 1.6 percent to 6.3 billion lek (Euro 44 million), ranking Albania’s second largest imports after minerals, fuels and electricity with a slight difference.
Albania’s trade deficit rose by 3.6 percent to 17 billion compared to January 2013. Trade exchanges with the EU accounted for 67.3 percent of Albania’s trade. Italy remains Albania’s top trade partner with 42.2 percent of total exchanges followed by Greece with 6.5 percent, China with 5.6 percent and Turkey with 4.9 percent, INSTAT said.
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.
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.”
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.
Albania’s top two trade partners Italy and Greece are expected to register positive growth rates in 2014, escaping their recession period, 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, according to the Eurostat.
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.
