TIRANA, Dec.8 – Albania’s trade deficit expanded for the first eight months of 2006 by 17 percent compared to last year reaching 139.4 billion leks ($1.49 billion/1.13 billion euro). National Statistics Institute (INSTAT) reported the latest data on Friday, citing faster growing imports as the cause. Last year, Albania’s trade deficit rose by 12.64% to 195.9 billion leks.. For the past three quarters of 2006, exports were 14.7 percent higher than last the year, while imports increased by 16.4 percent, according to INSTAT figures. A breakdown of the figures shows that the majority of Albania’s trade is carried out with European Union (EU) member states. This accounted for 67 percent of Albania’s merchandise flow in the first eight months of the current year, with Italy and Greece remaining the country’s top trading partners. Out of the total imports 61.24 percent came from the EU. The country exported to the EU 88.8 percent of its traded goods in these first eight months. Imports from Italy accounted for 27.7 percent of Albania’s total imports and exports to Italy contributed 72.9 percent of the country’s total exports for the relevant period.
Exports
The major Albanian exports were textiles, footwear, construction materials, metals and food, drinks and tobacco. Textiles and footwear especially remained Albania’s main exports in August as they were in the previous seven months of the year. They accounted for 51.2 period of Albania’s exports in August and comprised 55.4 percent for the first three quarters of 2006. The second ranking ones were construction materials and metal exports with 15.3 percent of the total in August and 16.9 percent for the first eight months of the year. Foods, drinks and tobacco accounted for 10 percent of total exports in August and 7.7 percent for the total period considered.
Imports
Machines, equipment and spare parts, made up most of Albania’s imported articles with a contribution of 20.1 percent in the total figure of all imports through August. Food, drinks and tobacco products were the second biggest import item with 18.6 percent of the total. Imports of metals and construction materials followed, accounting for 15.8 percent of the country’s total imports.
Albania is trying to boost its agricultural sector in order to reduce agricultural imports and support local business. Recommendations of the EU are also being considered by the government in order to fulfill European standards for food exports. The latest factor influencing trade is the implementation of the Interim Agreement, started on December 1 that has lowered custom fees and changed the structure of taxation relevant to trade. A direct result has been an increase in the import of vehicles from the EU, which are no longer subject to custom taxes.
The Interim Agreement is part of the Stabilization and Association agreement signed by Albania on June 2006.
