High electricity imports following
one of the worst droughts in decades broadened Albania’s trade gap in
the first eight months of this year despite exports growing by double
digits.
A report published by state
statistical institute, INSTAT, show Albania’s trade gap expanded to 223
billion lek (€1.64 bln) in the first eight months of this year, up 6.3
percent compare to the same period last year.
The widening of the trade gap came as
exports grew by 12.8 percent in January-August 2017 while imports were
also up by 6.3 mainly as a result of electricity imports of about €80
million during this summer as the prolonged drought almost paralyzed the
country’s hydro-dependant domestic electricity generation.
Albania’s exports are back to double
this year thanks to the resumption of production by the country’s
largest steel plant and modest growth in garment and footwear sales, the
country’s traditional top exporting industry.
Meanwhile, oil exports have
registered only a modest increase as a considerable part of domestic
production is being sold to a local refiner.
Albania is a net importer with
exports covering only about half of total imports. Italy, Greece and
China are the country’s main trading partners.
Albania’s exports registered modest
growth of 0.1 percent in 2016 following a 5 percent decline in 2015 when
they returned to negative growth rates after first contracting in 2009
soon after the onset of the global financial crisis.
The 2017 export prospects appear more
optimistic as international oil prices are expected to slightly pick up
with a positive impact on new drilling plans by oil companies.
Albania’s exports heavily rely on
garment and footwear manufacturing as well as oil and base metals whose
share in the country’s exports is estimated at two-thirds, making them
vulnerable to international headwinds.
(www.tiranatimes.com, September 21, 2017)