Economy Overview
Lagging behind its Balkan neighbors, Albania is making the difficult transition to a more modern open-market economy. Macroeconomic growth has averaged around 5% over the last five years and inflation is low and stable. 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 representing about 15% of GDP, mostly from Albanians residing in Greece and Italy; this helps offset the towering trade deficit. The agricultural sector, which accounts for over half of employment but only about one-fifth of GDP, is limited primarily to small family operations and subsistence farming because of lack of modern equipment, unclear property rights, and the prevalence of small, inefficient plots of land. Energy shortages because of a reliance on hydropower, and antiquated and inadequate infrastructure contribute to Albania's poor business environment and lack of success in attracting new foreign investment. The completion of a new thermal power plant near Vlore has helped diversify generation capacity, and plans to upgrade transmission lines between Albania and Montenegro and Kosovo would help relieve the energy shortages. Also, with help from EU funds, the government is taking steps to improve the poor national road and rail network, a long-standing barrier to sustained economic growth.
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% (2008 est.)country comparison to the world: 79
Labor Force
1.103 million (not including 352,000 emigrant workers) (2007 est.)country comparison to the world: 137
Electricity production
2.888 billion kWh (2007 est.)country comparison to the world: 126
Electricity Consumption
3.603 billion kWh (2007 est.)country comparison to the world: 117
Electricity Exports
0 kWh (2008 est.)
Electricity Imports
2.475 billion kWh (2008 est.)
Unemployment Rate
12.5% (2008 est.)country comparison to the world: 138 13.2% (2007 est.) note: these are official rates, but actual rates may exceed 30% due to preponderance of near-subsistence farming
Population Below Poverty Line
25% (2004 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 3.2%
Highest 10%: 25.9% (2005)
Distribution of Family Income Gini Index
26.7 (2005)country comparison to the world: 124
Budget
Revenues: $3.458 billion
Expenditures: $4.175 billion (2008 est.)
Public Debt
51.9% of GDP (2008 est.)country comparison to the world: 34 51.4% of GDP (2007 est.)
Central Bank Discount Rate
6.25% (31 December 2008)country comparison to the world: 69 6.25% (31 December 2007)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$8.176 billion (31 December 2008)country comparison to the world: 74 $7.247 billion (31 December 2007)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$2.364 billion (31 December 2008 est.)country comparison to the world: 104 $2.162 billion (31 December 2007 est.)
Debt External
$1.55 billion (2004)country comparison to the world: 143
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
leke (ALL) per US dollar - 79.546 (2008 est.), 92.668 (2007), 98.384 (2006), 102.649 (2005), 102.78 (2004)
