Economy Overview
Poor and backward by European standards, Albania is making the difficult transition to a more modern open-market economy. The government has taken measures to curb violent crime and to spur economic activity and trade. The economy is bolstered by annual remittances from abroad of $600-$800 million, mostly from Greece and Italy; this helps offset the towering trade deficit. Agriculture, which accounts for about one-half of GDP, is held back because of frequent drought and the need to modernize equipment, to clarify property rights, and to consolidate small plots of land. Energy shortages and antiquated and inadequate infrastructure make it difficult to attract and sustain foreign investment. The planned construction of a new thermal power plant near Vlore and improved transmission and distribution facilities 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: growth was strong in 2003 and 2004, the nation has important oil and gas reserves, and inflation is not a problem.
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
3.1% (2004 est.)
Labor Force
1.09 million (not including 352,000 emigrant workers) (2004 est.)
Electricity production
5.68 billion kWh (2004)
Electricity Consumption
6.76 billion kWh (2004)
Electricity Exports
100 million kWh (2002)
Electricity Imports
1.08 billion kWh (2004 est.)
Unemployment Rate
14.8% officially; may be as high as 30% (2001 est.)
Population Below Poverty Line
25% (2004 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: NA
Highest 10%: NA
Budget
Revenues: $2.05 billion
Expenditures: $2.46 billion, including capital expenditures of $500 million (2004 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
$1.206 billion (2004 est.)
Debt External
$1.41 billion (2003)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
leke per US dollar - 102.649 (2004), 121.863 (2003), 140.155 (2002), 143.485 (2001), 143.709 (2000)
