Lower imports narrow trade deficit

TIRANA, March 1 – Albania’s trade deficit dropped to a record 20.4 billion lek (around 200 million dollars) in January 2011, down 41.8 percent compared to December 2010 and 0.6 percent compared to January 2010, according to the latest INSTAT foreign trade report published this week. The situation was mainly a result of a 7.5 percent increase in exports and a sharp 27.9 percent drop in imports compared to last December. INSTAT’s foreign trade data show Albania exported 14.7 billion lek of goods in January 2011, up 54.4 percent compared to January 2010 mainly because of higher electricity, mineral and garment and footwear exports. Meanwhile, imports in January 2011 registered 35.2 billion lek, up 16.9 percent on the year.
The European Union remained Albania’s main trade destination even last December accounting for 65.5 percent of Albania’s exports and imports. Italy continued remaining the top trade partner with 49.5 percent of total exports and 29.3 percent of imports followed by neighbouring Greece with 4.8 percent of exports and 12.6 percent of imports.
The import of excise goods, whose majority of 72 percent is made up of oil products dropped by 36.5 percent compared to last December. Excise good imports were worth 4.5 billion lek last January accounting for 12.9 percent of total imports.
The exports list in January is topped by textile and footwear products which increased to 5.1 billion lek, up from 4.1 billion a year ago. Second came “minerals, fuel and electricity” whose exports almost doubled to 4.1 billion lek followed by “construction materials and metals” worth 3.1 billion lek, up from 1.1 in January 2010.
The import list is led by “machinery, equipment and spare parts” at 6.8 billion lek, up from 6.3 billion in January 2010, followed by “mineral fuel and electricity” at 6.4 billion lek and “food, beverages and tobacco” at almost 5.8 billion lek.
INSTAT data show the textile and footwear industry was the main exporter in 2010 with 55.6 billion lek followed by “minerals, fuel and electricity” with 45 billion lek, accounting for 34 percent and 28 percent of total exports respectively.
The garment and footwear industry, which employs more than 40,000 workers overcame the 2009 crisis when exports dropped by 8 percent because of lower demands from the traditional partners which were severely hit by the global crisis. INSTAT data show exports of this group grew by 13 percent year-on-year in 2010.