Economy Overview
Albania, a formerly closed, centrally-planned state, is making the difficult transition to a more modern open-market economy. Macroeconomic growth averaged around 6% between 2004-08, but declined to about 3% in 2009-10. 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. Remittances, a significant catalyst for economic growth have declined from 12-15% of GDP to 9% of GDP in 2009, mostly from Albanians residing in Greece and Italy; this helps offset the towering trade deficit. The agricultural sector, which accounts for almost 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 needed to expand the country's export base. FDI is among the lowest in the region, but the government has embarked on an ambitious program to improve the business climate through fiscal and legislative reforms. 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% (2010 est.)country comparison to the world: 113
Labor Force
1.053 million (2010 est.)country comparison to the world: 141
Electricity production
5.201 billion kWh (2009 est.)country comparison to the world: 113
Electricity Consumption
6.593 billion kWhcountry comparison to the world: 102 note: 35% of electricity is lost in the system as a result of transmission inefficiencies and theft (2009 est.)
Electricity Exports
0 kWh (2009 est.)
Electricity Imports
1.884 billion kWh (2009 est.)
Unemployment Rate
13.7% (2010 est.)country comparison to the world: 142 13% (2009 est.) note: these are official rates, but actual rates may exceed 30% due to preponderance of near-subsistence farming
Population Below Poverty Line
12.5% (2008 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 3.5%
Highest 10%: 29% (2008)
Distribution of Family Income Gini Index
34.5 (2008)country comparison to the world: 91 26.7 (2005)
Budget
Revenues: $3.124 billion
Expenditures: $3.491 billion (2010 est.)
Public Debt
57.1% of GDP (2010 est.)country comparison to the world: 39 57.3% of GDP (2009 est.)
Central Bank Discount Rate
5% (31 December 2010 est.)country comparison to the world: 71 5.25% (31 December 2009 est.)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$2.648 billion (31 December 2010 est.)country comparison to the world: 114 $2.969 billion (31 December 2009 est.)
Stock of Broad Money
$9.426 billion (31 December 2010 est.)country comparison to the world: 105 $9.096 billion (31 December 2009 est.)
Stock of Domestic Credit
$7.948 billion (31 December 2010 est.)country comparison to the world: 102 $8.162 billion (31 December 2009 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$2.541 billion (31 December 2010 est.)country comparison to the world: 108 $2.37 billion (31 December 2009 est.)
Debt External
$4.752 billion (31 December 2010 est.)country comparison to the world: 112 $4.719 billion (31 December 2009 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
leke (ALL) per US dollar -104.08 (2010)94.98 (2009)79.546 (2008)92.668 (2007)98.384 (2006)
