TIRANA, Oct. 28 – Albania’s trade gap slightly widened in the first three quarters when exports registered a moderate drop due to a sharp decline in international oil and base metal prices affecting the country’s key exports. Data published by the country’s state statistical institute, INSTAT, shows Albania’s trade gap slightly rose by 0.7 percent to 206 billion lek (€1.45 billion) in the first three quarters of this year when exports dropped by 3.7 and imports were down by 1.4 percent. The export/import coverage ratio also dropped to 47.4 percent on a bigger decline in exports.
A slowdown in the traditional garment and footwear exports and a double-digit drop in exports of minerals, fuels and electricity continues holding back Albania’s exports.
Exports of garment and footwear products rose by only 2.6 percent to 66.9 billion lek (€472.5 mln) in the first three quarters of this year affected by lower demand from Italy, Albania’s top trading partner and the destination of around 85 percent of these exports. The positive effects of the package of incentives government approved in early 2014 have almost been exhausted and Albania’s top exporting industry is now struggling to maintain positive growth rates affected by new tax hikes on dividends and fuel and higher electricity and fuel prices and recent costly customs scanning tariffs.
Meanwhile, imports of “machinery, equipment and spare parts” an indicator also measuring private investments in Albania, rose by 13 percent to around 80 billion lek (€563.5 million) in the first three quarters of this year.
A significant drop in international oil and base metal prices is having a negative impact on Albania’s exports which in 2014 registered their lowest growth rate since the onset of the global crisis in 2009.
Experts say the situation is a result of the poor diversification of Albanian exports which mainly rely on energy and garment and footwear products, accounting for 70 percent of total exports.
Albania’s exports suffered a setback in 2014 affected by poor electricity and oil exports. INSTAT data shows exports grew by only 3.75 percent in 2014, while imports were up by 6.7 percent, further widening the trade gap in a net importer such as Albania.
Albania’s exports grew by 15.6 percent in 2013, registering growth rates for the fourth consecutive year after the shrink in onset of the global crisis in 2009.
