| 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 2009-11, and 0.5% in
2012. 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 declined from 12-15% of GDP before the
2008 financial crisis to 8% of GDP in 2010, 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 lack of modern equipment, unclear
property rights, and the prevalence of small, inefficient plots of land. Energy
shortages because of a reliance on hydropower - 98% of the electrical power
produced in Albania - 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. The
country will continue to face challenges from increasing public debt, having
slightly exceeded its former statutory limit of 60% of GDP in 2012. Strong
trade, remittance, and banking sector ties with Greece and Italy make Albania
vulnerable to spillover effects of the global financial crisis. |
| GDP (purchasing power parity) |
$25.86 billion (2012 est.)
$25.73 billion (2011 est.)
$24.98 billion
(2010 est.)
note: data are in 2012 US dollars
Albania
has an informal, and unreported, sector that may be as large as 50% of official
GDP |
| GDP (official exchange rate) |
$12.39 billion (2012 est.) |
| GDP - real growth rate |
0.5% (2012 est.)
3% (2011 est.)
3.5% (2010 est.) |
| GDP - per capita (PPP) |
$8,000 (2012 est.)
$7,800 (2011 est.)
$7,500 (2010 est.)
note: data are in 2012 US dollars |
| GDP - composition by sector |
agriculture: 20.4%
industry: 19.1%
services: 60.5% (2012 est.) |
| Population below poverty line |
12.5% (2008 est.) |
| Labor force |
1.071 million (2011 est.) |
| Labor force - by occupation |
agriculture: 47.8%
industry: 23%
services: 29.2% (September 2010 est.) |
| Unemployment rate |
13% (2012 est.)
13.3% (2011 est.)
note: these are
official rates, but actual rates may exceed 30% due to preponderance of
near-subsistence farming |
| Unemployment, youth ages 15-24 |
total: 35.5%
male: 41.6%
female: 27.1% (2001) |
| Household income or consumption by percentage share |
lowest 10%: 3.5%
highest 10%: 29%
(2008) |
| Distribution of family income - Gini index |
34.5 (2008)
26.7 (2005) |
| Investment (gross fixed) |
25.8% of GDP (2012 est.) |
| Budget |
revenues: $3.262 billion
expenditures:
$3.669 billion (2012 est.) |
| Taxes and other revenues |
26.3% of GDP (2012 est.) |
| Budget surplus (+) or deficit (-) |
-3.3% of GDP (2012 est.) |
| Public debt |
60.6% of GDP (2012 est.)
58.9% of GDP (2011 est.) |
| Inflation rate (consumer prices) |
2% (2012 est.)
3.5% (2011 est.) |
| Central bank discount rate |
5% (31 December 2010 est.)
5.25% (31 December 2009 est.) |
| Commercial bank prime lending rate |
13.2% (31 December 2012 est.)
12.43% (31 December 2011 est.) |
| Stock of money |
$3.028 billion (31 December 2008)
$2.707 billion (31 December
2007) |
| Stock of narrow money |
$2.677 billion (31 December 2012 est.)
$2.575 billion (31 December 2011
est.) |
| Stock of quasi money |
$6.251 billion (31 December 2008)
$6.433 billion (31 December
2007) |
| Stock of broad money |
$9.951 billion (31 December 2011 est.)
$9.426 billion (31 December 2010
est.) |
| Stock of domestic credit |
$8.587 billion (31 December 2012 est.)
$8.408 billion (31 December 2011
est.) |
| Market value of publicly traded shares |
$NA |
| Agriculture - products |
wheat, corn, potatoes, vegetables, fruits, sugar beets, grapes; meat, dairy
products; sheep |
| Industries |
perfumes and cosmetic products, food and tobacco products; textiles and
clothing; lumber, oil, cement, chemicals, mining, basic metals,
hydropower |
| Industrial production growth rate |
3% (2010 est.) |
| Current Account Balance |
-$1.45 billion (2012 est.)
-$1.695 billion (2011 est.) |
| Exports |
$2.121 billion (2012 est.)
$1.954 billion (2011 est.) |
| Exports - commodities |
textiles and footwear; asphalt, metals and metallic ores, crude oil;
vegetables, fruits, tobacco |
| Exports - partners |
Italy 45.3%, China 7.8%, Turkey 6.3%, Greece 5.2%, Spain 5.1%, India 4.6%
(2011) |
| Imports |
$5.219 billion (2012 est.)
$5.076 billion (2011 est.) |
| Imports - commodities |
machinery and equipment, foodstuffs, textiles, chemicals |
| Imports - partners |
Italy 33%, Greece 12.2%, China 5.9%, Turkey 5.6%, Germany 4.3%
(2011) |
| Reserves of foreign exchange and gold |
$2.35 billion (31 December 2012 est.)
$2.473 billion (31 December 2011
est.) |
| Debt - external |
$5.281 billion (31 December 2012 est.)
$5.188 billion (31 December 2011
est.). |
