Imports increase by 6.7% , but trade deficit narrows in March

TIRANA, May 3 – Albania imported 273 million euros of goods in March 2010, registering a 6.7 percent increase compared to March 2009, according to the Bank of Albania. Foreign trade data show Albania imported 719 million euro of goods in the first quarter of this year, which is 2 to 3 percent less than the same period last year.
However, a considerable part of imports, some 5 billion leks (36 million euros) includes government spending on the completion of the Thirre tunnel, part of the Rreshen-Kalimash road linking Albania to Kosovo.
Imports, which determine the performance of the domestic consumption, are government’s main source of tax revenues.
However, the increase in imports last March did not help government with budget revenues during the first quarter of this year.
Official data by the Finance ministry show budget revenues in the first three months were 72.6 billion leks (726 million dollars) compared to 72.2 billion leks one year ago.
Experts say that the real budget revenues are lower than last year considering the depreciation of the national currency, Lek, by 12 percent during the past 12 months and an inflation rate at 4 percent during the first three months.
However, exports have registered a considerable increase during the first three months of this year.
According to the Finance Ministry, the volume of exports during the first three months of 2010 reached 167,000 tons or 74 percent more compared to the same period last year. ‘Made in Albania’ goods during the first quarter of this year reached 28,000 tons, registering an increased of 26 percent year-on-year.
Albania exports fell by 8 percent last year while imports dropped by 1.8 percent.
The Albanian Centre for International Trade (ACIT), an NGO specialized in foreign trade analysis, warned last month that that the decrease in exports by 8 percent last year shows Albania could be losing ground in the competitive advantage of the main exporting sectors such as shoes whose export fell by 5 percent.