Albania



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Albania Economy 2008


Economy - overview: Lagging behind its Balkan neighbors, Albania is making the difficult transition to a more modern open-market economy. The government has taken measures to curb violent crime, and recently adopted a fiscal reform package aimed at reducing the large gray economy and attracting foreign investment. The economy is bolstered by annual remittances from abroad of $600-$800 million, mostly from Albanians residing in Greece and Italy; this helps offset the towering trade deficit. Agriculture, which accounts for more than one-fifth of GDP, is held back because of lack of modern equipment, unclear property rights, and the prevalence of small, inefficient plots of land. Energy shortages and antiquated and inadequate infrastructure contribute to Albania's poor business environment, which make it difficult to attract and sustain foreign investment. The completion of a new thermal power plant near Vlore and improved transmission line between Albania and Montenegro will help relieve the energy shortages. Also, the government is moving slowly to improve the poor national road and rail network, a long-standing barrier to sustained economic growth. On the positive side, macroeconomic growth was strong in 2003-07 and inflation is low and stable.
GDP (purchasing power parity): $20.87 billion note: Albania has a large gray economy that may be as large as 50% of official GDP (2007 est.)
GDP (official exchange rate): $10.62 billion (2007 est.)
GDP - real growth rate: 6% (2007 est.)
GDP - per capita (PPP): $5,800 (2007 est.)
GDP - composition by sector: agriculture: 21.2% industry: 20.5% services: 58.3% (2007 est.)
Labor force: 1.09 million (not including 352,000 emigrant workers) (September 2006 est.)
Labor force - by occupation: agriculture: 58% industry: 15% services: 27% (September 2006 est.)
Unemployment rate: 13.2% official rate, but may exceed 30% due to preponderance of near-subsistence farming (2007 est.)
Household income or consumption by percentage share: lowest 10%: 3.4% highest 10%: 24.4% (2004)
Distribution of family income - Gini index: 26.7 (2005)
Investment (gross fixed): 23.3% of GDP (2007 est.)
Budget: revenues: $2.782 billion expenditures: $3.155 billion (2007 est.)
Public debt: 51.4% of GDP (2007 est.)
Inflation rate (consumer prices): 2.9% (2007 est.)
Central bank discount rate: 6.25% (31 December 2007)
Commercial bank prime lending rate: 14.1% (31 December 2007)
Stock of money: $2.707 billion (31 December 2007)
Stock of quasi money: $6.433 billion (31 December 2007)
Stock of domestic credit: $7.341 billion (31 December 2007)
Agriculture - products: wheat, corn, potatoes, vegetables, fruits, sugar beets, grapes; meat, dairy products
Industries: food processing, textiles and clothing; lumber, oil, cement, chemicals, mining, basic metals, hydropower
Industrial production growth rate: 4% (2007 est.)
Electricity - production: 2.892 billion kWh (2007 est.)
Electricity - consumption: 3.607 billion kWh (2007 est.)
Electricity - exports: 0 kWh (2007 est.)
Electricity - imports: 2.8 billion kWh (2007 est.)
Oil - production: 6,425 bbl/day (2007 est.)
Oil - consumption: 30,900 bbl/day (2006 est.)
Oil - exports: 748.9 bbl/day (2005 est.)
Oil - imports: 24,860 bbl/day (2005 est.)
Oil - proved reserves: 199.1 million bbl (1 January 2008 est.)
Natural gas - production: 30 million cu m (2006 est.)
Natural gas - consumption: 30 million cu m (2006 est.)
Natural gas - exports: 0 cu m (2007 est.)
Natural gas - imports: 0 cu m (2007 est.)
Natural gas - proved reserves: 849.5 million cu m (1 January 2008 est.)
Current account balance: -$1.202 billion (2007 est.)
Exports: $1.076 billion f.o.b. (2007 est.)
Exports - commodities: textiles and footwear; asphalt, metals and metallic ores, crude oil; vegetables, fruits, tobacco
Exports - partners: Italy 72%, Greece 8.8%, China 2.7% (2007)
Imports: $3.999 billion f.o.b. (2007 est.)
Imports - commodities: machinery and equipment, foodstuffs, textiles, chemicals
Imports - partners: Italy 27.6%, Greece 14.8%, Turkey 7.4%, China 6.8%, Germany 5.6%, Switzerland 5%, Russia 4.2% (2007)
Reserves of foreign exchange and gold: $2.162 billion (31 December 2007 est.)
Debt - external: $1.55 billion (2004)
Market value of publicly traded shares: $NA
Currency (code): lek (ALL) note: the plural of lek is leke
Exchange rates: leke (ALL) per US dollar - 92.668 (2007), 98.384 (2006), 102.649 (2005), 102.78 (2004), 121.863 (2003)

NOTE: The economy information regarding Albania on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Albania Economy 2008 information contained here. All suggestions for corrections of any errors about Albania Economy 2008 should be addressed to the CIA.