Economy Overview
An extremely poor country by European standards, Albania is making the difficult transition to a more open-market economy. The economy rebounded in 1993-95 after a severe depression accompanying the collapse of the previous centrally planned system in 1990 and 1991. However, a weakening of government resolve to maintain stabilization policies in the election year of 1996 contributed to renewal of inflationary pressures, spurred by the budget deficit which exceeded 12%. The collapse of financial pyramid schemes in early 1997 - which had attracted deposits from a substantial portion of Albania's population - triggered severe social unrest which led to more than 1,500 deaths, widespread destruction of property, and an 8% drop in GDP. The new government, installed in July 1997, has taken strong measures to restore public order and to revive economic activity and trade. The economy continues to be bolstered by remittances of some 20% of the labor force that works abroad, mostly in Greece and Italy. These remittances supplement GDP and help offset the large foreign trade deficit. Most agricultural land was privatized in 1992, substantially improving peasant incomes. In 1998, Albania recovered the 8% drop in GDP of 1997 and pushed ahead by 7% in 1999. International aid has helped defray the high costs of receiving and returning refugees from the Kosovo conflict.
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
7% (1999 est.)
Labor Force
1.692 million (including 352,000 emigrant workers and 261,000 domestically unemployed) (1994 est.)
Electricity production
5.15 billion kWh (1998)
Electricity production by source
Fossil fuel: 2.91%
Hydro: 97.09%
Nuclear: 0%
Other: 0% (1998)
Electricity Consumption
5.29 billion kWh (1998)
Electricity Exports
0 kWh (1998)
Electricity Imports
500 million kWh (1998)
Currency
1 lek (L) = 100 qintars
Unemployment Rate
14% (October 1997) officially, but may be as high as 28%
Population Below Poverty Line
19.6% (1996 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $393 million
Expenditures: $676 million, including capital expenditures of $NA (1997 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
Debt External
$820 million (1998)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
leke (L) per US$1 - 135.31 (December 1999), 137.69 (1999), 150.63 (1998), 148.93 (1997), 104.50 (1996), 92.70 (1995)
