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.
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.)
Labor Force
1.09 million (not including 352,000 emigrant workers) (September 2006 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.)
Unemployment Rate
13.2% official rate, but may exceed 30% due to preponderance of near-subsistence farming (2007 est.)
Population Below Poverty Line
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)
Budget
Revenues: $2.782 billion
Expenditures: $3.155 billion (2007 est.)
Public Debt
51.4% of GDP (2007 est.)
Central Bank Discount Rate
6.25% (31 December 2007)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$7.341 billion (31 December 2007)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$2.162 billion (31 December 2007 est.)
Debt External
$1.55 billion (2004)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
leke (ALL) per US dollar - 92.668 (2007), 98.384 (2006), 102.649 (2005), 102.78 (2004), 121.863 (2003)
