Exports To Crisis-hit Greece Continue Dropping

TIRANA, Mar 1؁lbanian exports to Greece continue to fall as the neighboring country is plunged into its worst financial crisis in decades. Data published by the Bank of Albania show Albanian exports to Greece underwent a further decrease last January despite the general rising trend of the country’s exports. Albania exported 3.84 million euros of goods to Greece in January 2010, or 5 percent less than in January 2009 when exports reached Euro 4.04 million.
Meanwhile, data published by the Institute of Statistics (INSTAT) show exports to Greece were the hardest hit in Albania’s 2009 foreign trade balance sheet. Greece bought Lek 7.6 billion of goods from Albania in 2009, registering a 23 percent decrease compared to 2008 when Greek exports were Lek 9.9 billion.
Experts say the real situation regarding exports is worse than shown in statistics because of the depreciation of Albania’s national currency, the Lek, which has lost12 percent in value against the Euro, making Albanian exports seem larger than they really are.
Greece, which is Albania’s second biggest trading partner, registered a considerable drop in demand for Albanian goods such as garments and metals. The southeastern Albanian region of Korca, where the majority of clothes and shoe companies selling their products in Greece are situated, was the worst affected by the crisis in the neighboring country.
The crisis has also affected Albanian immigrants living and working in Greece, some of whom are already returning home after losing their jobs. Remittances sent by an estimated more than 500,000 Albanian immigrants in Greece are considered the most important source of revenue for Albanian families, especially in rural areas.
However, data show the Greek crisis had a slight impact on the Albanian economy in 2009 when exports to Greece dropped to 7.4 percent of the total Albanian exports, down from 8.8 percent in 2008.
Italy continued remaining the main trading partner in 2009 with an estimated 63 percent of the total Albanian exports, compared to 61.8 percent in 2008.
The Greek government has recently approved a new package of tax increases and spending cuts to save 4.8bn euros and ease its budget crisis.
The socialist government has pledged to reduce Greece’s budget deficit from 12.7%, more than four times the limit under euro zone rules, to 8.7% during 2010. It is also seeking to reduce its 300bn euro debt.