Economy Overview
Albania, a formerly closed, centrally-planned state, is making the difficult transition to a more modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, more recently, its negative effects have put some pressure on the Albanian economy. While the government is focused on establishing a favorable business climate through the simplification of licensing requirements and tax codes, it entered into a new arrangement with the IMF for additional financial and technical support. Remittances, a significant catalyst for economic growth declined from 12-15% of GDP before the 2008 financial crisis to 7% of GDP in 2012, mostly from Albanians residing in Greece and Italy. 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 a lack of modern equipment, unclear property rights, and the prevalence of small, inefficient plots of land. Complex tax codes and licensing requirements, a weak judicial system, poor enforcement of contracts and property issues, and antiquated infrastructure contribute to Albania's poor business environment and makes attracting foreign investment more difficult. Inward 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. Albania’s energy supply has improved in recent years mostly due to upgraded transmission capacities that Albania has developed with its neighboring countries. However, technical and non-technical losses - including energy theft and non-payment - continue to be a threat to the financial viability of the entire system. Also, with help from international donors, the government is taking steps to improve the poor national road and rail network, a long-standing barrier to sustained economic growth. The country will continue to face challenges from increasing public debt, having exceeded its former statutory limit of 60% of GDP in 2013. Strong trade, remittance, and banking sector ties with Greece and Italy make Albania vulnerable to spillover effects of debt crises and weak growth in the euro zone.
Agriculture Products
wheat, corn, potatoes, vegetables, fruits, sugar beets, grapes, meat, dairy products; sheep
Industries
food and tobacco products, textiles and clothing; lumber, oil, cement, chemicals, mining, basic metals, hydropower
Industrial Production Growth Rate
3.1% (2013 est.) country comparison to the world: 93
Labor Force
1.098 million (2013 est.) country comparison to the world: 140
Labor Force by Occupation
agriculture: 54.6%
industry: 12.8%
services: 32.6%
Unemployment Rate
16.9% (2013 est.) country comparison to the world: 148 14.4% (2012 est.) note: these are official rates that may not include those working at near-subsistence farming
Population Below Poverty Line
14.3% (2012 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: 92 26.7 (2005)
Budget
revenues: $3.074 billion
expenditures: $3.858 billion (2013 est.)
Public Debt
70.5% of GDP (2013 est.) country comparison to the world: 38 62.5% of GDP (2012 est.)
Central Bank Discount Rate
$NA (31 December 2013 est.) country comparison to the world: 96 4% (31 December 2012 est.)
Commercial Bank Prime Lending Rate
9.52% (31 December 2013 est.) country comparison to the world: 80 10.28% (31 December 2012 est.)
Stock of Narrow Money
$2.791 billion (31 December 2013 est.) country comparison to the world: 117 $2.652 billion (31 December 2012 est.)
Stock of Broad Money
$6.539 billion (31 December 2013 est.) country comparison to the world: 118 $6.316 billion (31 December 2012 est.)
Stock of Domestic Credit
$5.17 billion (31 December 2013 est.) country comparison to the world: 112 $5.233 billion (31 December 2012 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$2.827 billion (31 December 2013 est.) country comparison to the world: 111 $2.784 billion (31 December 2012 est.)
Debt External
$3.213 billion (31 December 2013 est.) country comparison to the world: 135 $2.957 billion (31 December 2012 est.)
Stock of Direct Foreign Investment at Home
$4.226 billion (31 December 2011) country comparison to the world: 93 $3.534 billion (31 December 2010)
Stock of Direct Foreign Investment Abroad
Exchange Rates
leke (ALL) per US dollar -109.2 (2013 est.) 108.19 (2012 est.) 103.94 (2010 est.) 94.98 (2009) 79.546 (2008)
