TIRANA, March 25 – Albanian imports continued dropping last February, reflecting a decrease in consumption and affecting government revenues. Statistics of the foreign trade balance sheet published by the Bank of Albania show Albania imported 230 million euros of goods in February 2010, registering the lowest level since 2007. Albania imported 258 million euros of goods in February 2009 compared to 266 million euros in February 2008.
The declining trend of imports which started since last year is also a signal of a crisis in a public finances considering that the Albanian government ensures 70 percent of its revenues from taxes of imported goods.
Meanwhile, exports during this year are at their highest levels in years mainly because of the increase in the price of oil produced in Albania and the continuous exports of electrical energy considering the country’s good hydro situation. Bank of Albania data show Albania exported 81 million euros of goods in February 2010, registering a 37 percent increase compared to February 2009.
However, Albania’s main exports of clothing and footwear continue suffering the consequences of the global economic crisis, especially because of low demand from Italy and Greece.
Foreign direct investment
Foreign direct investment (FDI) registered its lowest level in years last December. Statistics published by the Bank of Albania show some 1.94 million euro entered Albania in FDI in December 2009 and 2.24 million went out, registering a total net of minus 0.3 million euros. Experts say the deficit of FDI was caused by declining interest of foreigners in the Albanian economy and the transfer of profits foreign companies made in the previous years.
Last year, FDI registered a 7 percent growth compared to 2008, reaching 664 million euros. However, an important part of these investments came from the sale of public assets such as the minority stake at mobile operator AMC and the privatization of the Distribution System Operator.
The FDI is considered as the most important factor for the development of the country because of the capital, technology and new experience it brings.
Meanwhile, a considerable amount of profits by foreign companies have been transferred to their countries of origin. Foreign companies in Albania transferred during the January-September period last year 234 million euros of profits, an increase of 35 percent compared to the same period in 2008.
