Total Albanian exports dropped by 18 percent to 751 million Euros in the crisis year of 2009, but recovered in 2010 when they hit a record 1.17 billion Euros mainly because of a boom in electricity exports, according to BoA
TIRANA, Dec. 5 – Albanian exports to Italy and Greece, the country’s top trade partners, have not been affected by the economic crisis impacts that its neighboring countries are facing. Latest data published by the country’s state Institute of Statistics, INSTAT, show Albanian exports to Italy, which account for 52 percent of the total, registered another significant growth during the first ten months of this year. Data show exports to Italy, which are dominated by footwear and garment products, rose by 25 percent y-o-y to around 85 billion lek in Jan-Oct. 2011.
Neighboring Greece remains Albania’s fourth biggest destination of exports and the second major trade partner for imports. While imports from Greece are on a falling trend, Albanian exports there have marked a turning point during this year after the ongoing shrink since the breakout of the global crisis in 2008. Exports to Greece during the first ten months of this year grew by a moderate 14 percent to 8.3 billion lek, making Greece the fourth most important destination of exports after Italy, Turkey and Kosovo.
Imports from Italy have preserved their growing trend accounting for around one-third of total imports. Imports from Italy rose by 25 percent to 133 billion lek compared to Jan-Oct 2010.
Meanwhile, imports from neighboring Greece during the first ten months of this year registered a slight 2.6 percent drop, but the severely crisis-hit neighboring country continues to remain the second major destination for imports at around 47 billion lek, or 10 percent of total exports.
Trade exchanges with Greece were the hardest hit because of the higher intensity of the crisis there. Central bank data show exports to Greece dropped to 56 million Euros in 2009 and 62 million Euros in 2010, down from 80 million Euros in 2008, just before the crisis broke out.
Meanwhile, Albanian imports from Greece have also been in decline since 2008 when they reached a record 524 million Euros. Imports from Greece in 2009 fell to 505 million Euros and 459 million Euros in 2010.
Total Albanian exports dropped by 18 percent to 751 million Euros in crisis year of 2009, but recovered in 2010 when they hit a record 1.17 billion Euros mainly because of a boom in electricity exports, according to BoA.
While Italy and Greece face severe debt crises and are currently run by caretaker governments, Albanian exports to these countries seem safe, mainly because of the major contribution of garment and footwear products, with demand for them on the rise also because of the Arab Spring turmoil.
Textile products, which are Albania’s top exports to these countries, continued rising even in the first ten months of this year, growing by 17.3 percent to 54.4 billion lek compared to the same period last year, according to INSTAT.
The worst impacts Albania is facing from Italy and Greece, where more than one million people live and work, is declining remittances and the return of migrants adding to the already high unemployment rates. Lower foreign direct investment is also expected as Albania has been engulfed by a slowdown of economic growth since 2009 registering growth rates of 3 to 4 percent compared to an average of 7 percent before the global crisis.
