Trade gap growing wider as electricity exports drop

TIRANA, September 6 – Albania’s trade deficit continued growing even in July mainly because of a considerable drop in exports. Recent data published by the Institute of Statistics (INSTAT) show the country’s trade gap last July reached 31 billion lek, increasing by 27.5 percent compared to the previous month and 14.5 percent year-on-year.
July exports totaled 13.4 billion lek, down 8.8 percent compared to June 2010, but up 21 percent year-on-year, according to INSTAT’s foreign trade balance sheet report.
Meanwhile, imports continued growing reaching 44.5 billion lek, 8.8 percent compared to the previous month and 21 percent compared to July 2009.
Trade with European Union countries continued having the major share accounting for 65.6 percent. Italy remained Albania’s top trade partner with 58 percent of total exports and 30.6 percent of imports. Second came Greece with 5.6 percent of exports and 11 percent of imports. INSTAT data showed Albanian exports and imports in July increased with Italy and Kosovo.
Compared to last June, leather exports increased by 46 percent while textile and shoe exports by 7.8 percent. The mineral, fuel and electricity exports continued dropping, registering a significant 46.1 percent decrease mainly as a result of lower electricity exports.
Meanwhile, construction material and metal imports increased by 46 percent, “food, beverages and tobacco” by 20.8 percent, “wood and paper products” by 16.5 percent.
The chemical and plastic product imports dropped by 6.9 percent.
INSTAT said the import of excise goods in July increased by 5.1 percent compared to the previous month, reaching 6.6 billion lek, which is 15 percent of the country’s total imports. Oil products account for a majority of 66.1 percent of the total imported excise goods.
The central banks says that despite the significant 86 percent increase in exports during the second quarter of this year, the country’s long-tern foreign currency position stability will require more careful behaviour towards the trade deficit and promotion of capital inflows.
According to the central bank’s latest forecast, Albania’s exports are expected to grow this year, and 2010 will be the first time the country’s exports exceed 1 billion euros.
A big boost for Albanian exports appears to have come through energy production. Exports of electricity alone were about 15 million euros per month and made up more than 25 percent of total exports. Other products with some weight in the basket included chromium and copper, clothes and food.
The central bank’s data show that in this year’s first six months there were 602 million euros worth in exports, this being significantly closer to the annual level of 2009, which was a little more than 750 million euros.