TIRANA, Jan. 29 – Albania’s exports suffered a setback in 2014 registering their lowest level since the onset of the global crisis in 2009 affected by poor electricity and oil exports. Data published by state statistical institute, INSTAT, show 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.
The poor performance was affected by lack of hydro-dependent electricity exports and the slowdown in exports in late 2014 by Bankers Petroleum, the country’s biggest exporter which has reduced production as global oil prices have halved since their peak in June 2014.
Garment and footwear exports led the 2014 growth after rising by 24 percent to 86 billion lek (Euro 603 million), overcoming “minerals, fuels and electricity” with a slight difference. The latter dropped by 14 percent in 2014, losing their lead position.
Albania’s exports rose to 255 billion lek (Euro 1.8 billion) while imports were up to 552 billion lek (Euro 3.87 billion) widening the trade gap by 9 percent to 296 billion lek (Euro 2 billion).
Imports of “machinery, equipment and spare parts,” an indicator also measuring private investments, rose by 7.2 percent to 105 billion lek (Euro 742 million) leading the list of imports.
Italy and Greece continued remaining Albania’s top trade partners even in 2014.
Italy accounted for around half of Albanian exports and one-third of total imports. Neighbouring Greece which has returned to growth after sixth consecutive year of recession, now ranks the fifth most important destination of Albanian exports after Italy, Kosovo, Spain and Turkey with only 3 percent of the total and the second most important destination only for imports with around 10 percent.
Top trade partners Italy and Greece escaping recession and the start of the Trans Adriatic Pipeline construction are expected to have a major impact on the Albanian economy and exports in 2015 when government and international financial institutions expect a recovery to 3 percent after sluggish GDP growth rates of 1 to 2 percent in the past three years.
Albania’s prospects have in particular improved as top trade partner Italy is heading toward recovery and Greece has escaped 6-year recession.
Data published by the country’s Institute of Statistics show 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.
A report published by the country’s state Institute of Statistics on the performance of exports during the 2008-2012 period shows that except for the slight decline of 6 percent in the onset of the global financial crisis in 2009, Albania’s exports registered strong double digit growth rates of 54 percent and 22 percent in 2010 and 2011 before slowing down to 8 percent in 2012.
Garment and footwear products were Albania’s key exports from 2008 to 2011 but were overtaken by exports of ‘minerals, fuels and electricity’ in 2012.
