Trade exchanges with Italy, Greece recover in early 2014

TIRANA, June 3 – Albania’s trade exchanges with top partners Italy and Greece have registered a recovery in early 2014 as the two neighbouring countries are expected to escape recession this year.
INSTAT data show trade exchanges with Italy continued positively performing even in the first four months of this year when exports rose by 31 percent and imports were down by 10 percent.
The most significant recovery was registered in trade exchanges with neighbouring Greece, the second most important trade partner, which is expected to overcome its six-year recession only this year.
INSTAT data show Albanian exports to Greece rose by 40 percent while imports were up by 9 percent year-on-year for the first four months of this year.
Data shows Italy was the destination of 58 percent of Albanian exports in the first four months of this year and accounted for around 29 percent of Albania’s imports.
Meanwhile, exports to neighbouring Greece accounted for only 4 percent ranking Greece the fourth most important destination after Italy, Spain and Kosovo. Greece continues remaining the second major partner for Albania’s imports with around 10 percent.
Six years after the onset of the global financial crisis, exchanges with top trade partner Italy have remained unaffected but suffered a sharp shrink with neighbouring Greece which is expected to overcome its six-year recession only this year. The same has also happened with foreign direct investment from the two top trade partners with Italy strengthening its position and Greece losing its top investor position which it managed to hold until 2010.
Bank of Albania data show top trade partners Italy and Greece ranked only the fourth and fifth largest investors in 2012 with Canada having taking over due to huge investments in oil and mining.
Albania’s top two trade partners Italy and Greece are expected to register positive growth rates in 2014, escaping their recession period, according to forecasts by Eurostat, the statistical office of the European Union, which is a positive signal for a further recovery in Albania’s exports.
Italy, Albania’s top trade partner which is the destination of more than 50 percent of Albania’s exports, is expected to register positive growth rate of 0.7 percent in 2014 after being in recession in 2012 and 2013.
Meanwhile, Greece which still remains Albania’s second top trade partner is also expected to register positive growth rate of 0.6 percent in 2014 overcoming six consecutive years of recession, which has also considerably affected trade exchanges with Albania.
The two neighbouring countries account for around 50 percent of Albania’s trade exchange, being the top investors in Albania and the overwhelming source of migrant remittances.
Latest Eurostat data show the Italian economy declined by 0.5 percent year-on-year in the first quarter of the year while GDP in Greece was down by 1.1 percent.