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 reduce the large gray economy. 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 about one-quarter 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 planned construction of a new thermal power plant near Vlore and improved transmission and distribution facilities eventually 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 2003-06 and inflation is low and stable.
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
3.4% (2005 est.)
Labor Force
1.09 million (not including 352,000 emigrant workers) (September 2006 est.)
Electricity production
5.385 billion kWh (2005)
Electricity Consumption
3.323 billion kWh (2005)
Electricity Exports
300 million kWh (2005)
Electricity Imports
371 million kWh (2005)
Unemployment Rate
13.8% official rate, but may exceed 30% due to preponderance of near-subsistence farming (2006 est.)
Population Below Poverty Line
25% (2004 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA% (2004)
Distribution of Family Income Gini Index
26.7 (2005)
Budget
Revenues: $2.608 billion
Expenditures: $3.1 billion (2007 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$1.813 billion (2006 est.)
Debt External
$1.55 billion (2004)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
leke per US dollar - 98.384 (2006), 102.649 (2005), 102.78 (2004), 121.863 (2003), 140.155 (2002)
