INSTAT data show Italy has the lion’s share of Albania’s textile and footwear products accounting for 84.6 percent of total exports
TIRANA, August 1 – Garment and footwear products were Albania’s top exports during the first half of 2010. Latest data published by the country’s Institute of Statistics show exports of clothing and footwear products in the first six months of this year were worth 32.9 billion lek (Euro 236 million, USD 330 million), up from 27.8 billion lek during the same period in 2010, registering a 15.4 percent increase. INSTAT data show Italy has the lion’s share of Albania’s textile and footwear products accounting for 84.6 percent of total exports. The second most important destination is Germany with around 2 billion lek of exports (6 percent of the total) during the first half of this year, followed by Greece and Turkey with 1.7 and 1 billion lek respectively.
Imports of footwear and textile products, including raw material which is processed in Albania to be re-exported, also increased to around 25 billion lek, up from 21 billion lek during the first half of 2010.
Few weeks ago, Parliament decided to lift the 10 percent customs duties for imports of clothing and the footwear industry starting from next September, a move which is also expected to lower prices of these products in domestic markets and attract more foreign investors.
Prime Minister Sali Berisha said that some 20 new textile and footwear companies had opened in Albania during the first five months of this year after the government decision to remove customs duties for raw material these companies import. The number of new companies during the same period in the previous years was 5 to 10. Sources from the National Chamber of Clothes Producers say the recent political crises in some North African and Middle East countries is helping Albania attract more foreign investors in the textile and footwear industry, which produces the country’s top exports. A number of Italian companies which formerly worked in Tunisia and Egypt have moved to Albania following the escalation of political crises and turmoil in these countries. Albania’s manufacturing industry, which consists mainly of textile and footwear companies overcame the 2009 crisis in early 2010 registering significant growth. More than half of manufacturing businesses operating in Albania declared lower sales and profits in 2009, according to a study conducted by Albanian Center for International Trade (ACIT). Falling demand in foreign markets, the increase in manufacturing costs and breach of contracts by foreign partners were the main factors contributing to the poor performance of these manufacturers in 2009. The garment and footwear industry employs more than 50,000 workers. Government officials say Albania is first in Europe for the lowest tax burden on foreign direct investment, and has the lowest minimum wage at 20,000 lek (200 dollars per month) as well as the youngest population in Europe with an average age of 31 years. “Minerals, fuel and electricity,” Albania’s second biggest exports, were worth 28.3 billion lek during the first half of this year, up from 25.8 billion lek during the same period last year.
Third come construction materials and metals which rose by a record 32 percent reaching 22.7 billion lek at the end of June 2011.
The import list is led by “machinery, equipment and spare parts” with almost 50 billion lek during the first six months of this year, up 6 billion lek compared to the same period last year. The rising trend by 12 percent confirms ongoing investments by the business community despite low consumption rates and consumer’s saving trend.
“Food, beverages and tobacco” are the second biggest imports accounting for 44 billion lek, up from 40 billion lek in the first half of 2010.
Latest Bank of Albania data in Euro show Albanian exports suffered two consecutive drops in May and June 2011.
Bank of Albania data published in Euro show exports during January-April 2011 rose by 27 percent to 470 million euro year-on-year but dropped by 8 percent in May and June.
In total, Albanian exports during the first half of this year registered 700 million Euros, up 15 percent compared to the first half of 2010, when they were at 595 million Euros.
A report published by the Albanian Centre for Competitiveness and International Trade (ACIT) shows total exports in 2010, amounted to 161 billion ALL and increased by 55.7% as compared to 2009. The sharp increase is due mainly to metals and electricity exports.
