Data show exports to Kosovo have also registered a sharp increase during this year ranking the neighbouring country the second most important destination of Albanian exports
TIRANA, Dec. 1 – Albania’s trade gap continued narrowing even last October only thanks to continuing good performance in the export of footwear and garment products, metals, minerals and resumption of electricity sales. Recent data published by the country’s Institute of Statistics show the trade gap in October 2010 dropped to 27 billion lek (270 million dollars) narrowing by 0.8 percent compared with last September and 3.2 percent compared to October 2009.
INSTAT data show exports in October 2010 almost doubled to 14.5 billion lek year-on-year and rose 5.1 percent compared to September 2010.
The textile and footwear manufacturing industry with total exports worth 4.6 billion lek only in October 2010 remained the main contributor to Albania’s sales abroad. Statistics show exports of this increasingly important segment of the Albanian industry increased to 46.3 billion lek during January-September 2010, up from 40.3 billion lek compared to the same period last year, accounting for 35 percent of total exports in 2010.
“Minerals, fuel and electricity exports” remain the country’s second biggest exports with a total of 37.9 billion lek during the first 10 months of this year, or 2.3 times more compared to January-September 2009. This year’s positive performance in this group, accounting for 28 percent of total exports, is mainly attributed to electricity exports which registered a record 86 million euros during the first half of this year favoured by heavy rains which also caused severe flood damage in northern Albania, where the Drin Cascade hydropower plants producing more than 90 percent of the country’s electricity are situated. Construction materials and metal exports are the third biggest contributor with 20 percent of total exports, worth 26.5 billion lek in January-September 2010, more than double compared to the same period last year. Meanwhile, imports registered a slight 1.2 percent decrease compared to September 2010 but rose 10 percent compared to October 2009.
Data show food, drink and tobacco products continue remaining one of Albania’s top imports, worth 71.5 billion lek in January-September 2010 or 18 percent of the total exports. The list is topped by imports of “machinery, equipment and spare parts” worth 75.6 billion lek (755 million dollars) until September 2010, almost 4.7 billion lek less compared to the first ten months of 2009, a sign showing businesses’ hesitation to invest in new technology also because of tight lending standards banks continue applying.
Construction material and metal imports continue increasing despite the crisis this sector has been suffering since the second half of 2009 negatively contributing to the country economic growth.
The European Union remained Albania’s main trade destination even last October accounting for 68.2 percent of Albania’s exports and imports. Italy continued remaining the top trade partner with 50.5 percent of total exports and 33.3 percent of imports followed by neighbouring Greece with 4.6 percent of exports and 10.6 percent of imports.
Data show exports to Kosovo have also registered a sharp increase during this year ranking the neighbouring country the second most important destination of Albanian exports with 8.4 billion lek during the first 10 months of this year, up 63 percent compared to the same period last year. Third came China with total exports worth 7.6 billion lek followed by Turkey with 7.4 billion lek and Greece with 7.2 billion lek.
According to IMF’s projections, Albania’s trade balance (goods and service) will account for -22.7 of the GDP in 2010 and is expected to drop to -19.2 percent of the GDP only by 2013, down from an estimated 25 percent in 2009.
