INTRODUCTION
Albania is a country in Southeastern Europe, borderd by Kosovo, Republic of Macedonia, Greece and Montenegro. The official name of the state is the Republic of Albania. Local long form is Republika e Shqiperise and short Shqiperia.

Albania covers an area of 28,748 km².

The country has a coastline on the northern shore of the Mediterranean Sea, the Adriatic Sea to the west and the Ionian Sea to the southwest where the Albanian Riviera begins.
According to Census 2011. Albania has a population of 2.8 million people.

Capital and the largest city of Albania is Tirana (600 000). The city is cultural, economic and governmental center of the country. It is located on the western center of Albania, surrounded by hills with the Dajti Mountain on the east and a slight valley opening on the north-west overlooking the Adriatic Sea in the distance. Other significant cities with more than 100 000 residents are: Durres (201 519), Shkoder (102 075), Vlore (141 513), Elbasan (126 703).

Albania is a unitary parliamentary constitutional republic that is transforming its economy into a market-oriented system. It was a socialist state People’s Socialist Republic of Albania from 1946. to its fall in 1992. when changed name in the Republic of Albania.

The Albanian Declaration of Independence is the declaration of independence of the Albanian Vilayet from the Ottoman Empire. Independent Albania was proclaimed in Vlore on 28 November 1912.
Albanians are majority nation in country, others are Greeks, Vlachs, Roma, Montenegrins, Macedonians, Egyptians, and Bulgarians.

Official spoken language is Albanian, other spoken languages are English, Italian and Greek.

Religions are Muslim (Sunni and Bektashi) 70%, Albanian Orthodox 20%, and Roman Catholic 10%.

Albania joined NATO in April 2009 and in June 2014 became a candidate for EU accession. In November 2016. it received a European Commission recommendation to open EU accession negotiations conditioned upon implementation of a judicial reform package passed the same year. Albania is also a member of the United Nations, WTO, World Bank, the Council of Europe, the OSCE, the Organisation of Islamic Cooperation. It is one of the founding members of the Energy Community, Organization of the Black Sea Economic Cooperation and the Union for the Mediterranean.

The national currency is Albanian Lek (ALL). The country calling code is + 355 and the ISO country code is al.

GEOGRAPHY/TERITORY
Albania is situated in the southwestern region of the Balkan Peninsula. The country is is predominantly mountainous but has a coastline that streches for 450 km along the Adriatic and Ionian sea. The Adriatic separates Albania from Italy via the Strait of Otranto (72 km).

Albania share borders with Kosovo (112 km) to the northeast, the Republic of Macedonia (151 km) to the east, with Greece (282 km) to the south-east, and with Montenegro (172 km) to the north.


Total area of Albania amounts 28, 748 sq km, land 27, 398 sq km and water 1350 sq km. Geografic cocordinates are 41 00 N, 20 00 E.
The highest point is Maja e Korabit (Golem Korab) – 2764 m.

HIDROLOGY

Albania has more than 152 rivers and streams that form 8 large rivers flowing from southeast to northwest, mainly discharging towards the Adriatic coast.

The Drin is the longest river in Albania with a total length of 335 km (208 mi) of which 285 km (177 mi) flows within Albania proper.

Other main rivers are the Seman, Shkumbin, Vjosë, Mat, Ism, Erze and Osum.

The biggest lakes of Albania are the Shkodra Lake (surface 368km²), Ohrid Lake (surface 363km²) and Lake of Prespa (surface 285 km²). In the south significant is the Lake of Butrint (surface 160 km² mixed with seawater). In the massif of Nezhda Mountains in Dibra region there are 7 carstic lakes, Lakes of Lura, wich are attractive for their natural beauties.

Lokated on the east side of Shkodra Lake is town Shkodra (alb. Shkodër), the largest city in the north of Albania. The city is one of the oldest in Albania and it is also an important cultural and economic center.

MOUNTAINS

Two large European mountain ranges dominate Albania, the Dinaric Alps and the Pindus mountains.

With an average elevation of 708 m above sea level, Albania is one of the most mountainous countries in the world. It has a mountainous terrain that covers more than 70% of its territory. There are many peaks reaching heights of more than 2,000 m above sea level.

The tallest mountains of Albania are: Korab (2,764 m), Jezerce (2,694 ), Radohime (2,570 m), Maja e Kollates (2, 556 m), Gramoz (2,523 m), Gjallice (2,487 m), Nemercke (2,4865 m),Tommor (2,417m), Maja e Thate (2, 406), Bogicaj (2, 405 m), Shkelzen (2, 404 m), Koritnik (2, 396 m).

CLIMATE

Albania has Mediterranean climate, mild temperate-short, soft, wet winters; hot and dry summers. The lowlands have mild winters, averaging about 7 °C (45 °F). Summer temperatures average is 32 °C (90 °F), humidity is low. In the southern lowlands, temperatures average about 5 °C (41 °F) in the winter and 30 °C (86 °F) during the summer.

POPULATION
According to Albania population book (INSTAT) the population of Albania on January 1st 2017 is 2.88 million, increasing for the first time since 2001. The population increased by 1 thousand inhabitants compared to the previous year. The resident population of Albania, on January 1st 2017 was estimated about 2,876,591 inhabitants, compared with 2,875,592 inhabitants on January 1st 2016.

During 2016 the number of births has been 32 thousand, while the number of deaths was 21 thousand persons. The natural increase for the last year has been about 11 thousand persons. On the other hand net migration has increased compared with the previous year, but continues to be negative.

Table 1. Population 2009-2017

Age groups2001  2002  2003  2004  2005  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015  2016  2017  
MFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMFMF
0-41416861322632739491388461282302670761324111214122538231292281178042470321233021119902352921161721048752210471071779652320370010307492577195651974918737718486894234844701787049230283001175303904998179817229789705816621713678912681309170435893548173317108787739806811684208623880367166605
5-9157555149497307052152669145246297915148801141540290341145300137391282691141647132971274618136134127471263605132861122898255759125518115144240662121449110686232135114796104305219101107374967822041561036629388119754398230882491864799439185214179605901008158117168187364791791665438556178748164309
10-1416515115897932413016585415888632474016291615603231894815838915223131062015417014829530246515078214438029516214557813988228546014103513569227672713692413105326797713284412630325914712686512054924741411948311201923150211555410831722387111175910413321589210735198587205938102819938251966449942391773191196
15-19143573149532293105148396152406300802152485153512305997156181154566310747157782154250312032157821153551311372158703153806312509155770151021306791151309147326298635147279143718290997144453140493284946141053136784277837136535131391267926130449124893255342124592119875244467119828114883234711112793108144220937
20-24110284120252230536111045119624230669114069122716236785116435124071240506120918126654247572126828129388256216130005129530259535132219127801260020134104125997260101134204122965257169133076119984253060134840122270257110135651124203259854136268125142261410136017125216261233133298123601256899130180123992254172
25-29102024110902212926978851070722049579411210144819556092626997901924169000296342186344890249427218329689080926591817399119794485185682927679459118735896762961071928691024629795920042110785897621205479112794980682108621157799836521414411855199299217850122534102171224705123096107122230218
30-34104197111234215431101665108917210582987021065332052359288610001019289689629970281866578638293848180230836979200217569981012881121691248073488137168871796468658816623480571865021670738319985973169172859338493517086889749855291752789421686874181090977438719318493610121688496189712
35-39110207111978222185103984107641211625100806105542206348980811049122029939475110228519703692828101246194074915991004761920758944799439188886845569429517885182503927751752788073591204171939799828856116854379853870211668747970684502164208798588243216229080527810231615508222981621163850
40-441079211055092134301091531069812161341097271090892188161091221092302183521075801099852175651027351063232090589762910298520061495175101732196907932911019461952379093510022219115790207100180190387896019883218843387185952151824008520992955178164833758992117329682084877161698008079285707166499
45-498671282235168947898108630517611593544901161836609699694405191401996699711119678010234810107120341910417610293120710710517710528421046110507110571721078810420210683121103310024710373720398497953102015199968960381011631972019378899035192823923439794719029091151977071888589019396841187034
50-547181067977139787756557163014728575770723931481637743573759151194788407594115478181730790621607928510683397168503889418737517631692579918751844549559094910190500988059932219812710186510235220421710381710377720759410476310555421031710260210416020676210040910194520235497914100616198530
55-59625065894512145161028576691186976017756439116616607485778611853463910616161255266837167014135385726227113914376173162723071454697529074147149437773127687915419180886806111614978485484694169548887918965317844492293928101851039534295922191264972389784219508099865101027200892
60-6457960549971129575751755862113379597645932911909360161607141208756007659945120021580425657911462156768551611119295606953803109872568075498111178860038585971186356458763825128412669576664413360168828685071373357115671362142518742937499314928677900792851571858143783249164686
65-694393641800857364714144058911994903645771948075060447142977465146949266100735524025169110409352331525681048995459055900110490552835734911263255569567131122825417953732107911531335213310526653572526741062465546455267110731585475962111816860750619231226736276364711127474
70-74314953315564650327013442367124334923498368475345423612970671363183810274420376463778175427405363987880414422404148483724439014292386824449384501589953461914760993800482705050998779494835252010200349954524511024054949150658100149490845021099294481624896797129
75-79164862205538541168002295239752178802428642166195162540444920214532573447187242952746951764252232839953622258882889154779269833000056983286213167160292301623193162093323383349765835341263495669082357253671472439370613907776138384364101379449403024385484156
80-849370142712364198011479424595106461555626202109061570126607107371616326900101341532725461103401578226122110931671327806122711759729868135301779731327155281957435102159491988835837167492056737316178952188439779191442250641650206272333943966221652473646901
85+462510241148664505986714372447594831395845949436140304636906713703568612621183075885124231830863011259818899661012938195486646131591980570451469821743727814763220417733143152204880931370821801896214195231578920136052252592121307922291
Total152749815358223063320152445515325633057018151881315261803044993151375015204813034231150688915127453019634149936015039693003329148931614924392981755147790814803582958266146742014689352936355145964914590252918674145567514516932907368145877414442342903008146057714371932897770146156714308272892394146119914245972885796145845114171412875592145354114230502876591
Source: INSTAT

Table 2. Live births, deaths and natural increase, 1990-2016

VitetLindjeVdekjeShtesa natyrore   
YearsBirthsDeathsNatural increase
1990821251819363932
1991773611774359618
1992754251802657399
1993677301792049810
1994721791834253837
1995720811806054021
1996683581760050758
1997617391823743502
1998601391825041889
1999579481672041228
2000512421642134821
200153205.3281901334192.328
200242526.5751918723339.575
200345312.5282129424018.528
200440988.5982026920719.598
200538897.60922043018467.6092
200635891.21362085215039.2136
200734448.32772088613562.3277
200833444.74642074912695.7464
200934113.79022042813685.7902
2010340612010713954
2011342852001214273
2012354732087014603
2013357502044215308
2014357602065615104
2015327152241810297
2016317332138810345
Source: INSTAT

MAIN RESULTS OF POPULATION AND HOUSING CENSUS 2011 (INSTAT)

On 1 October 2011, the usually resident population in Albania was 2 821 977. The population has declined around 8.0 per cent, compared to the 2001 census, where the enumerated population was 3 069 275.

Data from the 2011 census show that the illiteracy rate for the population 10 years and over is 2.8 per cent.

At the time of the census, the number of private households in Albania was 722 262 of which 56.7 per cent were located in urban areas and 43.3 per cent in rural areas. About 90.2 per cent of the enumerated private households owned the dwelling where they lived, or were paying a mortgage, a loan or were in the process to acquire the legal act of ownership. Some 5.7 per cent of the total households rented their dwelling, mainly in urban areas. The number of residential buildings in Albania was 598 267.

GOVERNMENT

Albania is a parliamentary democratic republic with multi-party system. The government has a role of executive power in the country. The legislative power has the Government and Parliament, called the Assembly of the Republic of Albania (Albanian: Kuvendi).

The head of state is the President of the Republic. The President is elected to a 5-year term by the Assembly of the Republic of Albania by secret ballot, requiring a two-thirds majority of the votes of all deputies.

The Cabinet of Albania, also known as Council of Ministers (Albanian: Këshilli i Ministrave) is the executive branch of Albania. The Chairman of the Council (Prime Minister) is appointed by the President; ministers are nominated by the President on the basis of the Prime Minister’s recommendation. The Council is responsible to the Parliament of Albania.

The president of the state is Bujar Nishani. The Prime Minister is Edi Rama, and Deputy Prime Minister is Niko Peleshi.

Ministries of Albania:

Ministry of Defence
Ministry of Internal Affairs
Ministry of Foreign Affairs
Ministry of European Integration
Ministry of Economy
Ministry of Transport and Infrastructure
Ministry for Urban Development
Ministry of Finance
Ministry of Education and Sports
Ministry of Justice
Ministry of Culture
Ministry of Youth and Social Welfare
Ministry of Innovation and Public Administration
Minister of Health
Ministry of Energy and Industry
Ministry of Environment
Ministry of Agriculture, Rural Development and Water Resources
Minister of State for Relations with Parliament
Ministry of State for Local Government

National agencies/departments:

National Agency for Information and Society
National Agency of Natural Resources
National Tourism Agency
Property Restitution and Compensation Agency
Albanian telegraphic Agency
Archaeological Service Agency
Institute of Statistics
Bank of Albania

The court system of the Republic of Albania consists of a Constitutional Court, the Court of Cassation, appeals courts, and district courts.

Albania has diplomatic missions in 43 countries and 6 permanent missions accredited to various international organizations around the world.

ECONOMY
GDP: 11,40 billion USD (2015)
GDP per capita: 4543,09 USD (2015)
Natural resources: petroleum, natural gas, coal, bauxite, chromite, copper, iron ore, nickel, salt, timber, hydropower.

Economy is based on agriculture, food processing, tourism, textile industry, mining, chemicals, oil industry etc.

Monetary Policy of the Republic of Albania is an exclusive right of Bank of Albania. The Policy is designed in the view of achieving the main objective “to achieve and maintain price stability”.

Table 1. Quarterly GDP by expenditure aproach

Tables list              
EXPENDITURE APPROACH
Table 1.1.QUARTERLY GDP by EXPENDITURE approach , c u r r e n t prices.
Table 1.2.QUARTERLY GDP by EXPENDITURE approach , c o n s t a n t previous year prices.
Table 1.3.QUARTERLY GDP by EXPENDITURE approach, chain-linked volume measures, reference 2010 year (2010=100).
Table 1.4.QUARTERLY GDP by EXPENDITURE approach, c u r r e n t prices, NOMINAL GROWTH RATES, comparison with corresponding quarter of previous year.
Table 1.5.QUARTERLY GDP by EXPENDITURE approach, chain-linked volume measures, reference 2010 year (2010=100), REAL GROWTH RATES, comparison with corresponding quarter of previous year.
Source: Albanian Institute of Statistics

Table 2. Labour force survey

Anketa Tremujore e Forcave të Punës, Tr.1.2012-Tr.4.2016                          
Labour Force Survey, Q1.2012-Q4.2016
Shkalla e punësimit
Employment rate
MoshaGjiniaTr.1.2012Q1.2012Tr.2.2012Q2.2012Tr.3.2012 Q3.2012Tr.4.2012 Q4.2012Tr.1.2013 Q1.2013Tr.2.2013 Q2.2013Tr.3.2013 Q3.2013Tr.4.2013 Q4.2013Tr.1.2014 Q1.2014Tr.2.2014 Q2.2014Tr.3.2014 Q3.2014Tr.4.2014 Q4.2014Tr.1.2015 Q1.2015Tr.2.2015 Q2.2015Tr.3.2015 Q3.2015Tr.4.2015 Q4.2015Tr.1.2016 Q1.2016Tr.2.2016 Q2.2016Tr.3.2016 Q3.2016Tr.4.2016 Q4.2016SexAge
15 vjeç e lart Total51.150.248.648.74744.142.942.441.544.445.845.59930923181345.5643333721345.77552243590546.2970698730894747.51385799669848.38523454718849.90620022338249.085735780493Total15 years and above
Meshkuj56.756.255.355.45350.749.249.848.352.252.752.28379717296152.47140656791853.00117722010254.05091855569753.753.1008225408254.04670737811356.12386503971655.389298524855Male
Femra45.644.341.94241.538.137.135.534.937.139.239.26470738504338.9770862123438.9390706007838.48766222993340.241.85131760941342.77148243345443.66590781983642.753137981404Female
15-64 vjeç Total58.256.854.254.452.849.948.648.247.150.552.352.14998805759652.11106861431852.65762120294653.32170790740753.69065231246354.7762556493155.33891925623157.0963718402556.216796997009Total15-64 years
Meshkuj63.962.96161.159.557.255.856.754.458.759.759.24001304749159.43006492135160.47588117966161.41986786283460.68123665008460.39705462771661.07054420018563.35812056210962.752174835275Male
Femra52.450.847.547.846.743.342.140.539.942.745.445.4099250452445.081650319845.21685449802145.0466968210946.54740469277948.98838232895649.63598600516350.75849297065649.585397236871Female
15-29 vjeç Total3836.731.53230.127.627.327.825.827.530.529.201272516528.90231454894528.5676909125730.43387668745731.1319592046732.12795853559431.57566088259333.47042494220832.488405696769Total15-29 years
Meshkuj42.940.835.735.935.632.33234.830.232.835.433.67950838309533.57510550002535.06933040813937.97535127512136.33371362225936.51646406681534.80452158189937.91881420433535.896722906817Male
Femra32.231.926.627.324.823.122.821.321.122.125.524.52594415259423.86132038060821.56115591948721.85057603802725.21160407459426.96711447326127.96915989051628.38257549455428.599146309483Female
30-64 vjeç Total67.966.565.665.865.162.460.259.659.462.964.164.4950506970764.39639087135865.3903376761965.43706615624265.63181532282265.66361832586966.76242212365368.46179141097267.758652180115Total30-64 years
Meshkuj75.674.975.475.67371.769.169.369.473.573.774.0331754136874.39717347343275.25739620458974.86952921953474.64896756771373.02235945638774.81075145082176.72811848978276.977806205542Male
Femra6158.756.656.858.254.252.350.95053.255.355.87395747684755.36491569137356.59753499278256.33237290275456.92800120143958.55366930537459.18708889168960.57204185801758.92257341479Female
Source: Albanian Institute of Statistics

Table 3. Employment

 Shkalla e punësimit
Employment rate
          
Age group200720082009201020112012201320142015
Albania
15-2940.18363291721131.29949380919635.64974440241534.34889320385242.80678468920634.49605837473228.18478848060928.23641579488429.759684523902
30-6467.50478566795164.55502794789565.62974065792266.38476558685968.21774745862566.44540325620761.82181545022362.71985449768165.213860350334
15-6456.56550256774753.89103768274153.47616448441653.49207217198158.73334986115255.9158551932749.86388503286150.52051127436152.9453670358
15+50.25683528259846.34981353520847.52855617692347.47693667152151.90239431152349.64335359704744.08197675466644.32767520249546.152900118166
Male
15-2944.0885798129835.86448941561541.14746543691439.31870483602848.03195886952238.75242064272233.6900589705632.98647096683535.756857266726
30-6477.22618366699876.46613841552179.81770105966779.15768184811776.7396784341675.37986989467570.75933723591172.6691564962874.791772642725
15-6463.95383309940263.27720754644264.53997303113363.08694451451265.68308420052362.23970467036157.30918531173258.00686106730860.510355115302
15+57.33150183380254.01048830930956.99318024815255.90906353471358.63437445840555.93028091665550.68961451738451.36065881489753.309217949014
Female
15-2936.36740244916227.15460183621530.96102835132429.6494435864637.28488325996529.43191174592723.00869681957323.27499843156423.116141301537
30-6458.01411712744454.12334070876852.50712311284254.39866542305760.08002170420958.28330338006953.91571620647553.63620504000356.300894809955
15-6449.34952573853245.57494441740243.57369456293544.46050866390151.84104826324449.61378339318543.13335744996543.35205230355445.467966024642
15+43.43800078753439.39222908721738.90923647625339.46292747476145.30542874132643.45629663052238.02682209162837.64001827160339.153072391878
Source of information: Labour Force Surveys 2007-2015
Source: Albanian Institute of Statistics

Table 4. Unemployment

Shkalla e papunësisë          
Unemployment rate
Shkalla e papunësisë
Unemployment rate
Grupmosha200720082009201020112012201320142015Age group
ShqipëriaAlbania
15-2919.75304835283324.74461632303621.881176294322.4939646813821.88624864500126.03793355456727.23666801082232.53242427815733.19180565937215-29
30-6410.67148807551610.04738573942410.401190115710.82332386930111.09175965014710.00319760709413.08412961136613.26474196989312.51728042495730-64
15-6413.45728734405713.20436969701513.82368094207714.16344255333914.31287754215513.80271669638316.35330076158117.90072065971217.48398419204715-64
15+13.36596051087213.05187596073513.7622556959514.03895729738113.97657244292213.35381339604115.9348162579517.48782385135117.09389940856615+
MeshkujMale
15-2922.84616924871125.52607937662321.63439288354823.83836853771622.79868639785928.38930720861329.69345243511235.63131299041832.2905679682215-29
30-6410.6900193573299.10973110097338.49938380855258.30998654855619.962172795713810.43589020805114.60701149522314.0188260614212.24386913301630-64
15-6414.41334382552712.65456443554812.20590466688112.7808279287813.98999955835215.18557126300118.34439464635619.68492998928817.52313522053115-64
15+14.28929505232212.49095190631612.15326231322112.62750451055913.61502261904714.63138715710817.79807788871219.16426041684317.07285043557715+
FemraFemale
15-2915.75143423668623.78557912614522.1590181752720.7395189440620.60882134120122.02709152689623.55937218082327.35530029634434.68158859708615-29
30-6410.64739392286311.18113651829312.94518683818214.04078882237912.4317334537429.486539650948111.24656463052512.31346020766412.85292658887230-64
15-6412.21613642870813.87128204555915.87863787823815.94315997515314.7151655862412.00917635468913.82957697364215.49550532285417.43242725021515-64
15+12.16221956756213.74039755386915.81901017439315.86896727955114.43077645300911.67968669564113.54089096292615.20609795808517.12191553399715+
Burimi i informacionit: Anketa e Forcave të Punës 2007-2015
Source of information: Labour Force Surveys 2007-2015
INSTAT, pas publikimit në maj 2014 të shifrave të plota të popullsisë për vitet 2001-2014 (http://www.instat.gov.al/al/themes/popullsia.aspx) të cilat reflektonin ndryshimet e popullsisë që vinin nga Censusi i Popullsisë dhe i Banesave 2011, ka rishikuar serinë kohore të Anketës Tremujore të Forcave të Punës. Informacioni demografik ka pësuar ndryshime të ndjeshme në strukturën e popullsisë dhe të njësive ekonomike familjare dhe si rrjedhim ka ndikuar në ndryshimet e treguesve të tregut të punës për periudhën nga tremujori i parë i vitit 2012 deri në tremujorin e parë 2014.
INSTAT, after the publication of the revised population estimates for the years 2001-2014 in May 2014, (http://www.instat.gov.al/al/themes/popullsia.aspx), which reflected the population changes derived by the Population and Household Census 2011, has revised the Quarterly Labour Force Survey time series. There is a significant change in the demographic information as regards to the structure of population and households, which in turn has had its impact on the change of the labour market indicators starting from the first quarter of 2012 to the first quarter of 2014.
Source: Albanian Institute of Statistics

MARKET
Every sector in Albania is open to foreign investors and there are no legal barriers to market entry. Trade is liberalized and there are no barriers to exporting to Albania. The government has made significant reforms to make trade easier and foreign investment more attractive. Ongoing improvements in administrative procedures, such as customs procedures, business registration, licensing, and, e-procurement are some examples.

Table 1. Exports of group goods and main partners, January-May 2016-2017

 ItalyKosovoSpainGreece
Jan.-May 2016Jan.-May 2017Jan.-May 2016Jan.-May 2017Jan.-May 2016Jan.-May 2017Jan.-May 2016Jan.-May 2017
Total* 55,011* 60,303* 6,513* 8,127* 2,061* 5,331* 4,364* 4,924
Food, beverages, tobacco* 2,892* 2,639* 1,096* 1,152* 322* 361* 866* 732
Minerals, fuels, electricity* 2,576* 4,512* 1,266* 2,438* 617* 4,079* 192* 138
Chemical and plastical products* 569* 565* 552* 533* -??* 2* 136* 229
Leather and leather manufactures* 1,079* 952* -??* 2* 3* 10* 23* 29
Wood manufactures and articles of paper* 2,421* 2,184* 114* 137* 2* 3* 343* 426
Textile and footwear* 35,987* 37,633* 25* 55* 795* 688* 1,896* 2,170
Construction materials and metals* 5,126* 6,905* 2,708* 3,128* 294* 182* 731* 693
Machineries, equipments and spare parts* 3,111* 3,522* 270* 258* 22* 1* 32* 342
Others* 1,249* 1,391* 483* 422* 7* 5* 145* 165

Source: INSTAT

Table 2. Imports of group goods and main partners, January-May 2016-2017

 ItalyTurkeyGermanyGreece
Jan.-May 2016Jan.-May 2017Jan.-May 2016Jan.-May 2017Jan.-May 2016Jan.-May 2017Jan.-May 2016Jan.-May 2017
Total68,15670,74217,39820,17623,02520,00617,61718,930
Food, beverages, tobacco6,9017,2602,1372,4111,6681,572* 6,075* 5,531
Minerals, fuels, electricity7,3276,387303939235243* 1,392* 2,303
Chemical and plastical products6,6957,6222,4733,0892,4693,116* 3,041* 3,299
Leather and leather manufactures5,5965,88014315124* 50* 29
Wood manufactures and articles of paper2,5872,5421,1191,315325311* 991* 1,105
Textile and footwear16,69817,5515,7436,2721,0371,000* 1,480* 1,530
Construction materials and metals6,9728,0852,0422,2027,7812,760* 2,818* 3,444
Machineries, equipments and spare parts13,20012,9812,6212,8738,93410,219* 1,151* 964
Others2,1812,435816925574781* 621* 727

Source: INSTAT

Albania continues to make strides in its transition from a closed, centrally planned economy to a modern, open-market economy. Country has signed several FTA’s free trade agreements with key markets (European Union, Turkey, CEFTA and EFTA countries) offering customs free access to a large market consumers.

Albania is a member of the World Trade Organization (WTO) and the North Atlantic Treaty Organization (NATO). Albania earned EU Candidate Country status in June 2014 and currently is working toward fulfilling EU requirements to begin accession negotiations.

EXPORT PARTNERS: Italy 43.4%, Kosovo 9.8%, US 7.7%, China 6.2%, Greece %, Spain 4.8% (2015)

IMPORT PARTNERS: Italy 33.5%, Greece 9%, China 10.1%, Germany 5.2%,Turkey 6.7% (2015)

Albania continues to make strides in its transition from a closed, centrally planned economy to a modern, open-market economy. Country has signed several FTA’s free trade agreements with key markets (European Union, Turkey, CEFTA and EFTA countries) offering customs free access to a large market consumers.

Albania is a member of the World Trade Organization (WTO) and the North Atlantic Treaty Organization (NATO). Albania earned EU Candidate Country status in June 2014 and currently is working toward fulfilling EU requirements to begin accession negotiations.

WORLD BANK OVERVIEW

Thanks to strong growth performance, Albania grew from the poorest nation in Europe in the early 1990s to middle-income status in 2008, with poverty declining by half during that period. As the economy continues to accelerate and labor markets improve, further gains in poverty reduction are expected. Continued fiscal consolidation and other reform efforts are expected to gradually reduce the debt-to-GDP ratio below 60% of GDP by 2021.

MACROECONOMIC STABILITY (Albanian Investment Development Agency)

The macroeconomic situation in Albania is characterized by stable prices, low inflation rates and solid exchange rates. Average annual inflation has remained relatively stable for more than a decade with 1.9% inflation recorded in 2013, 1.6% recorded in 2014 and 2% recorded during 2015. Unemployment is slightly decreased in 2015 while European countries are suffering.

LABOUR MARKET

Table 3. Labour force participation rate

SexAgeTr.1.2012Q1.2012Tr.2.2012Q2.2012Tr.3.2012 Q3.2012Tr.4.2012 Q4.2012Tr.1.2013 Q1.2013Tr.2.2013 Q2.2013Tr.3.2013 Q3.2013Tr.4.2013 Q4.2013Tr.1.2014 Q1.2014Tr.2.2014 Q2.2014Tr.3.2014 Q3.2014Tr.4.2014 Q4.2014Tr.1.2015 Q1.2015Tr.2.2015 Q2.2015Tr.3.2015 Q3.2015Tr.4.2015 Q4.2015Tr.1.2016 Q1.2016Tr.2.2016 Q2.2016Tr.3.2016 Q3.2016Tr.4.2016 Q4.2016  
Total15 years and above58.757.956.256.454.952.551.550.950.853.655.255.32836046542754.81743861809655.15350507796855.9225584161856.856.94472318230757.2269506383858.53418749421257.176266660307
Male66.166.164.86562.661.960.961.259.964.765.164.4766011098363.3796825357263.93541367950665.13359532330664.764.25144495677264.65102071763166.28002502319964.771918618055
Female51.549.847.747.847.743.942.941.441.843.345.846.658966101846.65166198173646.84462554137746.64552129972748.9058120180349.53916210888249.86545825917950.76016098762949.545628111764
Total15-64 years67.165.863.163.46259.758.658.157.961.363.463.56043126842163.02142286725863.71026956635864.66490212718565.25773107687765.92002083301565.7821968228367.30084320387765.749151690845
Male74.974.57272.270.970.369.6706873.274.273.50175419650472.23404138481973.30458668357674.36979605809873.52044210599673.44412697078373.54602801431775.30409355595673.797228526379
Female59.457.254.354.653.950.248.847.447.950.15354.10980971815254.17330402266554.57920004770354.74806851166456.81457553503758.17226587120158.05723025740259.20028958098157.582827399042
Total15-29 years49.848.644.843.640.338.337.538.836.941.445.144.15685881039143.86294010947243.44032535959344.97697712753445.89691823355446.19014296554945.02960372090746.10854057491645.161926723072
Male5756.452.35148.547.646.64945.152.25553.03062271832350.45975590571552.54033669838455.05373068285853.11682558591952.68220350829650.55465292966952.47810491330750.772462684467
Female41.139.535.934.732.629.52929.328.230.334.934.89254997779336.74631317139633.63363768856133.50815835341337.67961074442838.55553663635938.85835717039438.82334530731838.759697027072
Total30-64 years75.674.172.373.473.871.770.268.969.972.173.273.99841491046773.1627744440174.42393496107775.08643408688775.50613602970375.40445733739275.75840896843677.49554194282275.763095164444
Male84.884.383.284.483.683.582.48282.185.385.385.34943779087984.83889947409285.3852140736485.45104557198385.22562562602984.42063996257785.5732109354387.3006243008385.993702900608
Female67.164.762.463.365.161.359.357.258.660.162.263.73872243375962.61833631316764.65604272479165.08198375083366.12439016319966.6931033588366.52041776761268.13713603736465.957590719615
Source: Albanian Institutе of Statistics

INDUSTRY
Albania is a developing country with an economy based on the argiculture (18.4%) service (35.3%) and industrial (56.3)% sectors. The country is rich in natural resources, and the economy is mainly bolstered by agriculture, food processing, lumber, oil, cement, chemicals, mining, basic metals, hydro power, tourism, textile industry, and petroleum extraction.
The strongest sectors are energy, mining, metallurgy, agriculture and tourism. Primary industrial exports are clothing, chrome, oil and refined fuels. Furthermore, Albania has the second largest oil deposits in the Balkans and the largest onshore oil reserves in Europe.
Mining, metallurgy, food processing, textiles, lumber, and cement were among the leading industries in Albania under the communist regime, when heavy industry was a priority and some factories were capable of exporting.
Until 1961, most equipment was supplied by the Soviet Union and then by China until 1978. After 1989, the sector declined due to the lack of new technology and financing and the dilapidated condition of the factories. In the 1990s, plants and equipment were destroyed and sold for scrap, or fell into disuse, unable to compete with cheaper imports that came with trade liberalization.
A revival of chromium, steel, and cement industries came with the increase of foreign investments in 2000. Some new equipment was purchased in the West for a cigarette-making plant in Durrës and for a manufacture of underwear in Korçë. Construction, especially in housing, was the main factor for investment growth.
Mining is a large (but shrinking) sector of the economy, given the rich deposits of bauxite, chromium, nickel, iron, copper ores, and petroleum. The export of raw materials is crucial for foreign exchange earnings.
In the 1980s, Albania ranked third worldwide in chromium ore production. Output plunged 3 times to 157,000 tons in 1997, because of the weakening of domestic demand in addition to the closing down of loss-making industries, the lack of capital, high costs, problems with the electricity supply, and the economic chaos of 1997.
Albania’s output of copper was reduced from 1 million tons per year in the late 1980s to 25,000 tons in 1997. Iron-nickel mining collapsed in the early 1990s with the closing down of the steel works of Elbasan, its main client, but was revived in 2000 due to Turkish involvement at the plant.
Coal and petroleum output and petroleum refineries production have also declined in the 1990s due to their inadequate technology.

FOREIGN TRADE
According to data of Foreign trade book 2012 – 2016 (INSTAT) during the 5-years period (2012-2016) the export of goods increased, except 2015, when it decreased. The annual average of export increased 4.6 %. While import of goods during this 5 years period has been fluctuating (ups and downs), which has resulted in an average annual increase with 1.4 %, the trade deficit has improved, signing an average decrease with 0.2 %.

Exports from active processing of textile products and footwear have dominated the Albanian exports. During this period, the most exported product groups are: “Textile and textile manufacture” with 17.5 %, “Footwear” with 16.9 %, “Mineral Products” with 31.1 % and “Base metals and base metal manufacture” with 14.6 % of exports.

Partner with the largest weight in exports with Albania is Italy. During the 5 years period, exports with Italy occupied 51.0 %, followed by Kosovo with 7.5 %, Spain with 6.8 %, Greece with 3.9 %, etc. During 2012-2016 period exports to the EU countries occupied 76.6 % of total exports; while exports to CEFTA countries (Macedonia, Montenegro, Bosnia Herzegovina, Serbia, Kosovo and Moldova) occupied 12.4 % of exports.

Table 1. Flow of goods in foreign trade (billion ALL)

  Months ExportsAnnual change (%) ImportsAnnual change (%)Trade balance Percentage of cover               
200037.037168345-23.52364810072157.10900931807-1.5-120.0718409730723.574184896054
200144.0959271387919.058581174559190.15461456121.033552045401-146.0586874222123.189511987701
200247.490464459117.6980744948073210.36769891710.629815323002-162.8782344578922.574979287979
200354.486875152614.732243142229225.98257191477.4226571275378-171.495696762124.111096130531
200462.12114.010942683021236.0724.4646930069937-173.95126.314429496086
200565.8185.9512886141562262.19111.063997424515-196.37325.103073713438
200677.4053015117.605064739129299.1473814.095213031721-221.7420784925.875306516139
200797.17125.535329111077376.19425.755405245401-279.02325.830023870662
2008112.57215.849378929928439.8939009662416.932726456626-327.3219009662425.590716250608
2009104.515-7.157197171588428.83890491418-2.5131050982467-324.3239049141824.371622724136
2010161.54773460354.568946661245477.76811.409667948763-316.22026539733.813008531965
2011196.8965927417621.881370373673544.0041961107413.863673605336-347.1066033689836.19394742714
2012213.030167686168.1939330283689528.49-2.8518522874748-315.4598323138440.30921449529
2013246.39651498715.662733435011517.37765992001-2.1026585327983-270.9811449330147.624305043456
2014255.758936466163.7997377843002552.281124392146.7462256637673-296.5221879259846.310156666272
2015243.18295539858-4.9171228350193544.60588012269-1.3897350335658-301.4229247241144.653016846567
2016243.497796163680.12946662506998579.248092709036.3609692533131-335.7502965453542.036874912249
201401 - 1417.869127158-1.428027592674334.9216739682.2317942696174-17.0525468151.169159801372
02 - 1420.30350186727.88995309774239.19286160417.51741847372-18.88935973751.804081243529
03 - 1421.3016776510.36566835915242.4782513611.115699737936-21.1765737150.14725646183
Jan -Mars 1459.47430667511.573617244154116.59278693210.264864069374-57.11848025751.010279657941
201501 - 1517.76270134682-0.5955848332096735.2451607095170.9263208339143-17.48245936269750.397560939546
02 - 1518.39222864715-9.413515128424538.889076452849-0.77510326809046-20.49684780569947.294074132744
03 - 1522.179437318864.120612861025144.4367199082364.610520644171-22.25728258937649.912408847147
Jan -Mars 1558.33436731283-1.9166921413632118.57095707061.6966488156389-60.23658975777249.197854815404
201601 - 1616.37970901879-7.785934701185534.878590526388-1.040058197351-18.49888150759846.962072639941
02 - 1617.59197250281-4.351055870893641.8412511354697.5912697134854-24.24927863265942.044566128897
03 - 1619.36080743624-12.70830202812846.9376270136815.6280191486004-27.57681957744141.247946835056
Jan -Mars 1653.33248895784-8.5744966224908123.657468675544.2898461230326-70.32497971769843.129209686297
201701 - 1718.9226254413215.52479607307435.1862113727860.88197613996152-16.26358593146653.778524891018
02 - 1720.0952837268314.22984957269743.9844191738715.1221413801976-23.88913544704145.687277686658
03 - 1722.6828271918517.15847733391453.78904882573414.596864494356-31.10622163388442.169972674806
Jan -Mars 1761.7007363615.690712295043132.959679372397.5225627667189-71.25894301239146.405599540587
Source: Albanian Institute of Statistics

Table 2. Foreign trade by countries (million ALL)

  Exports    Imports     
03-1603-1701÷03-1601÷03-1703-1603-1701÷03-1601÷03-17
EU countries15843.5614338517014.4522017143122.4987056448452.2212609628091.93702172534282.36665621772646.02803014478460.869195606
Austria78.515792138.953875315.629139294.035703380.268313729447.7166434791207.3169578381089.397174957
United Kingdom50.14798417.853236108.94331170.6283173267.180186382492.058955993853.7420269571190.337659497
Germany641.817591022.5061031973.9725422635.3190633378.3054107365655.6832241618754.77313923711914.104766199
Greece877.3570921083.395441932341.02070332738.859842933837.5482330634365.474637869581.11822820810372.307760183
Italy10683.9268580412133.4738507831782.7595885335154.2172197312788.87852984615400.47554052237730.23021337338493.66091744
Spain245.96800781868.459241067.131796812680.6975291237.1080754831260.2312096832424.6327005032677.634069132
Croatia76.81309159.592705152.55742150.859632299.093851899323.593606307817.98528467905.476447412
Others of EU3189.0150191690.217755380.4842054727.6039545903.55442058696337.13283821211276.22947935811817.950400786
China333.368367977.949254908.5745222287.996834729.529113663630.374937212312179.33558091910541.629857539
Kosovo1376.320683391711.563127843125.679583394104.02029971406.688268266740.48071204931.2757786171600.163399305
Macedonia526.230923743.457319982.6422391628.577606578.14114266784.5000380611371.6631139381690.987837851
Russia--1.33846.3747921285.298999221577.2122870052173.9637816071890.83973328
USA140.172513461.411661328.303346705.352226649.05579362839.3676528822127.62705381742263.597140726
Turkey105.46452202.672603265.58859481.619423978.3197544494599.5368408429745.14554428810889.084612235
Ukraine1.34248748.98828235.630654170.881525326.41223152309.945240503656.904209352849.816932292
Switzerland205.61481416.218021387.086093283.7230011233.9090517441145.9783369422382.3471531492336.434488525
Others828.731694761506.11472234175.146822973579.969399335658.33563613516879.2861240319443.17843316922436.256175032
Total19360.80743622682.8271918553332.48895661700.7363646937.62701353789.048825734123657.468679132959.67937239
Source: Albanian Institute of Statistics

Table 3. Foreign trade according to the products 1993- 2016 (million ALL)

HS products199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016           
Import CIF58336.496757018.866146.92498060.05795021.605126271.2159464.793398157109.00931807190154.614561210367.698917225982.5719147236072262191299147376194.455515439893.90096624428838.65334508477767.75773228544003.92036701528490517377.87481802552281.139914544605.53416269579248.092
Food, beverages, tobacco16016.407915253.618472.07433929.60126162.45934684.11644258.8220234964.8115336920.24387542910.34089344884.4617285459854605553464.43417760895.26907773159.7119090374548.23713050387089.92001289891954.11558317393176.593424.28948470793971.41036596896.582952921100364.87715988
Minerals, fuels, electricity1769.91845843.16797.3875223.8187567.46510948.42411124.80850120770.54613626132.67528726984.36919926779.25232250463150741471.97941262932.28265678705.42235761928.79070243873521.524286466102268.7248493811047692656.82691178690225.07705960164.48770353449841.620444049
Chemical and plastic products6325.87163786.56044.0666956.0058474.43813573.07114131.70579913437.4615615656.14278818405.98173120812.000688226972659033085.65203639525.98439745465.0002853950827.62806725856300.70006788860994.3656307886602568257.68873592172920.68364674925.92882385480008.028177635
Leather and leather manufactures244.4582441.4822.7592063.782147.9642846.0992997.5055062734.182323947.848525167.5682416718.367601615556076528.2692237825.4387846924.4729666892.48973977638384.16486935889422.7061244569724.511394.72386115414319.79258615915.73206978517378.358902228
Wood manufactures and articles of paper681.5471739.91214.3222209.1682842.5174060.8664796.3827633971.074794700.7882426447.6422327201.0904667710852710887.08074313323.37771715015.8155939717420.76856088220431.86057567920418.8947490781810120299.85837095622921.68636221736.06543750523356.681913843
Textile and footwear5525.61757166.39810.89814977.63215078.91922010.60232839.1960622614.03248326634.5930330885.00363832720.53585317183222435110.87929139309.61061939582.0737153839248.88882975445733.71399328750499.6089475854832154130.27244516263003.76949269299.60260505579970.569112714
Construction materials and metals3232.56663561.34906.4557117.1869438.60312671.11113974.5426318475.2585720723573.95835326926.67114829711.1452872306553906347836.28600859560.46802667827.1321045265803.58540545276425.5381384782101.3381780956806663323.30343214370805.09065467540.83023423576001.981978757
Machineries, equipments and spare parts21713.531817874.215289.76721787.50519829.08620329.55327632.19616333169.41620645056.20548545058.37180149042.311662557786196360369.40204578773.32639697058.6619839897775.71311124692673.143231047109706.672563979776698517.122563547105692.42715117280.30790759130953.9505228
Others2826.57762352.52789.1963795.3623480.1545147.3587709.6339566972.2257217532.1589817581.7500348113.406312103281065510393.40169814048.69784316155.6100509714392.55179777417207.19255718516637.4937404871683415373.7890126418421.202620845.99642820321371.994779117
Export FOB12498.91338718709.822000.921044.43110448429.56995937037.16834544095.9271387947490.4644591154486.875152662121658187740597171112572104514.81242317161547.68900735196896.59274176213030.29218212246397.41467587255759.0056945243183243497.8
Food, beverages, tobacco2374.62206.32598.13732.94208.94981.34184.1629163822.6405463968.316220444455.508108374508.5337041507153866143.0622787078.7551737215.4603377513.2100069454.93388911177.8052144512818.9332475414651.4400844616746.648466821066.3256029625347.01880887
Minerals, fuels, electricity2771.53284.42949.52138.11212.63495.82432.335202998.911797840.6891551274.5642921426.701102254434365808.70430214986.5050820339.41893820612.46999444848.64809458775.8392476145.71300399417.54539285884.54270964505.1065956646563.78390399
Chemical and plastic products480.1308.9244343.5216.3292.2330.656593335.75528571.803629322.611347380.9744177428702562.963471786.0076921176.8023021776.6526961743.3131522833.9324312025.8029552887.263481093393.580775973961.342399814357.97252034
Leather and leather manufactures103.4235.8556.2870.41151.5995.31034.3938671197.8127011570.8165062066.8133231367.359993137512741485.7866832022.2781741738.3644051530.475847132567.451883632926.075028072773.450196213194.76314983076.341185082897.3245682596.45954651
Wood manufactures and articles of paper585.54511384895.51367.11268.51585.7866811375.0538731509.1577681611.9026552235.541157170720752504.1528533031.0961613618.8674813440.035813834796.127918444557.7054055353.026747557999.941549180.923669898336.406349077764.21733466
Textile and footwear3842.65793.57659.810814.29008.516466.732319.81331224069.61382528843.0239936530734.9206037435191.596724378553810242419.16304847069.18004748812.57136348329.0724440555646.3856342864106.435609326209369373.9283643985935.8523813190090.98957096106607.72524324
Construction materials and metals1284.26291844.12465.32190.81664.92336.933943193.6764223793.44797974576.3864516274.26924291051037313202.54987215385.54577222492.3701212982.5525823732339.18695641302.998055924022036190.6054471337102.5033729935279.5094306731890.80084733
Machineries, equipments and spare parts413.7279.1255.4369.21197.4878.22779.788069714.0409721499.4276491308.4006121933.73487244727502979.0104833924.5238174578.2158425538.937318356730.0435247749.7170137639.403735828245.9272179234.9546651610789.0485666111272.26645931
Others643.4198.91218.6371.7491.21061.11425.6993791329.6629291499.2442381139.3570671168.1639428159017202299.908522888.5491572600.3496712791.405721443421.5979563466.0847453960.96229744365203.65846836256.937718847097.52590543
Trade balance (Exp - Imp.)-45837.5967-43631.8-47437.124-76059.157-73977.205-95167.2-111035.223439-120071.84097307-146058.68742221-162878-171495.6967621-173951-196373-221742-279023.455515-327321.90096624-324323.84092191-316220.06872493-347107.32762525-315459.70781788-270981-296522.1342195-301422.53416269-335750.292
Food, beverages, tobacco-13641.8079-13047.3-15873.974-30196.701-21953.559-29702.816-40074.659104-31142.170984-32951.92765456-38454.83278463-40375.9280244-40914-40669-47321.371899-53816.513904-65944.25157203-67035.027124503-77634.986123898-80776.310368723-80357.56675246-78772.849400247-77224.7618982-75830.257349961-75017.858351013
Minerals, fuels, electricity1001.5816-2558.7-3847.887-3085.718-6354.865-7452.624-8692.473299-19771.634339-25291.986132-25709.804907-25352.551218-22502-28071-35663.27511-47945.777576-58366.003419-41316.320708438-28672.876192466-43492.885609383-34330.2869976760.718480214-4340.534354340.618892126-3277.8365400591
Chemical and plastic products-5845.7716-3477.6-5800.066-6612.505-8258.138-13280.871-13801.049206-13101.70628-15084.339159-18083.370384-20431.0262703-22269-25888-32522.688565-38739.976705-44288.19798339-49050.975371258-54557.386915888-58160.433199788-63999.197045-65370.425254831-69527.10287003-70964.586424044-75650.055657295
Leather and leather manufactures-141.0582-205.6-266.559-1193.38-996.464-1850.799-1963.111639-1536.369619-2377.032014-3100.754918-5351.007608-4780-4333-5042.48254-5803.16061-5186.108561-5362.0138926463-5816.7129857288-6496.631096386-6951.04980379-8199.960711354-11243.45140092-13018.407501785-14781.899355718
Wood manufactures and articles of paper-96.0471-288.9169.678-1313.668-1475.417-2792.366-3210.596082-2596.020917-3191.630474-4835.739577-4965.549309-6003-6452-8382.92789-10292.281556-11396.94811297-13980.732747052-15635.732657239-15861.189344078-12747.97325245-12299.916830956-13740.76269211-13399.659088435-15592.464579183
Textile and footwear-1683.0175-1372.8-2151.098-4163.432-6070.419-5543.902-519.382748000011455.5813422208.43096365-150.083034262471.060874613758787308.2837577759.5694289230.497647629080.1836142969912.671640992713606.8266617351377215243.65591922822932.0828893120791.38696590526637.156130526
Construction materials and metals-1948.3666-2932.3-3062.355-4651.886-7247.803-11006.211-11637.60869-15281.58215007-19780.5103733-22350.284697-23436.8760452-21550-28690-34633.736136-44174.922254-45334.76198452-52821.032823082-44086.35118247-40798.340122175-27846-27132.697985013-33702.58728101-32261.320803565-44111.181131427
Machineries, equipments and spare parts-21299.8318-17595.1-15034.367-21418.305-18631.686-19451.353-24852.408094-32455.375234-43556.777836-43749.971189-47108.576792-53331-59213-57390.391562-74848.802579-92480.44614198-92236.775792896-85943.099707047-101956.95555097-90126.59626418-90271.195346547-96457.47248484-106491.25934098-119681.68406349
Others-2183.1776-2153.6-1570.596-3423.662-2988.954-4086.258-6283.934577-5642.562792-6032.914743-6442.392967-6945.2423692-8738-8935-8093.493178-11160.148686-13555.26037997-11601.146076334-13785.594601185-13171.408995487-12873.037703-10937.78901264-13217.5441317-14589.058709363-14274.468873687
Source: Albanian Institute of Statistics

INVESTMENT
Through Albanian Investment Development Agency (AIDA), Republic of Albania provides effective ways to invest in the country by offering special favoring, facilitating or accelerating administrative procedures, specified as “assisted procedures” or “special procedures”, according to the new Law “On Strategic Investments” and secondary legislation which entered into force from 1 January 2016.

POTENTIALS FOR INVESTMENTS

Young and well educated population: According to data of Albanian Investment Development Agency (AIDA) 57% of Albania’s population is under the age of 35 and each year, more than 100,000 students enrolled in the Albanian university. A high number of Albanian students enrolles at European universities in countries such as; Italy, Greece, Germany, France, etc. English, Italian and Greek are all widely spoken while French and German are taught at school.

Optimal geographic location: Albania is considered as a strategic place for investments because of it’s suitable location – center of natural crossroads of major corridors of Europe. It is located in the western Balkans and vicinity with major European markets. Albania is connected to Europe through various ports in the Adriatic and Ionian Sea.

Good investment climate: Albania has implemented a liberal foreign investment regime with the goal of increasing foreign direct investment. The Law “On Foreign Investment” allows 100 percent foreign ownership of companies and outlines specific protections for foreign investors.

Among other potentials, according to AIDA, are: macroeconomic stability, free economic zones, strong growth potential, competitive taxation and incentives, free access to large markets etc.

SECTORS FOR INVESTENTS:
Tourism
Agriculture
ITC services
Mining industry

FOREIGN DIRECT INVESTMENTS – STATISTICS
Foreign Direct Investment annual inflows in Albania have increased significantly since 2008, averaging close to USD 1 billion per year for the period 2008-2014. FDI has increased average 9% to the GDP in 2015. Many leading companies are already benefiting from Albania’s business advantages and unexploited natural recourses. By the end of 2015, the total number of foreign companies operating in Albania is 10 560.

ENERGY
According to Albanian Institute of Statistics the net domestic production of electric power during 2016 was 7,136 GWh from 5,866 GWh produced in 2015, which increased by 21.7 percent. The increase of production of electricity during 2016 resulted on decrease of gross imports by 22.4% and increase of gross exports by 95.5 percent, compared with 2015. During 2016, Albania resulted to be net exporting of electricity, for the first time those last five years.

The quantity of electricity produced in 2016 was 7,136 GWh, where public hydropower plants production represents 71.4 percent of total net domestic production, while production of electricity from independent power producers constitutes 28.6 percent.

The consumption of electricity by domestic users, during 2016, increased by 0.8 percent compared with the previous year and reached 5,108 GWh from 5,069 GWh.

During 2016, the final consumption of electricity consumed by households increased by 2.6 percent. The situation differs for the final consumption of electricity consumed by non households, which decreased by 1.0 percent compared with 2015.

Table 1. Genaral balance of energy (2003-2012)

DiscriptionYears  
2003200420052006200720082009201020112012201320142015*
Gross inland consumption2204.66974963232,0582,2842,2792,2202,1752,1592,1042,1062,1622,0142,3462,340
Primary production1,0161,1791,1491,2371,0801,1591,2631,6431,4941,6762,0412,0212,117
Import1,1641,1481,1759351,2641,2871,2991,3061,4561,2771,7681,8981,508
Stock change026015775560-90030-235-308-127
Export12169461092443434587547889571,2011,2451,265
Bunkers00000000012272728
Consumption of the energy sector9373100781178133299364535942
Distribution losses85495020816510010582909616895108
Available for final consumption1,8022,0792,0501,8271,8091,9151,9451,9681,9521,8482,1232,1572,025
Final non-energy consumption1,7912,0111,9661,7751,7161,8221,8691,8791,9131,8171,9712,07052
Final energy consumption11688452939376883931152871,973
Source: Albanian Institute of Statistics

TRANSPORT
Monthly statistical information on transport provides an overview of the progress of freights and passengers by air, maritime and land transporting (represented by rail transports).

The volume of freight loading/unloading in ports is 274 thousand / tonnes. Compared with February 2016, this indicator decreased by 3.0 %. In the port of Durres are loadeding /unloading 92.7 % of the quantity of freights loaded /unloaded in all ports.

The volume of freights transported by rail per kilometer increased by 93.5 % compared to February 2016. In during two months 2017 is increased 62.5 % compared with the same perod of 2016.

Table 1 Air transport indicators February 2017

Source: Alabanin Institute of Statistics

Table 2 Freight transport 2007-2016 (000 tonnes)

YearRail passenger transport Maritime passenger transport Air passenger transport    
20071091924.5821107.323
20088221079.5591259.665
20096451160.0351394.688
20104301119.8031536.822
20114531165.7691817.084
20124481101.0251665.331
20133291009.1861757.342
20141871094.5691810.305
20151891185.9571977.044
2016891288.9882139.434
Source: Alabanin Institute of Statistics

Table 3 Passengers transport 2007-2016 (000 passengers)

YearRail passenger transport Maritime passenger transport Air passenger transport    
20071091924.5821107.323
20088221079.5591259.665
20096451160.0351394.688
20104301119.8031536.822
20114531165.7691817.084
20124481101.0251665.331
20133291009.1861757.342
20141871094.5691810.305
20151891185.9571977.044
2016891288.9882139.434
Source: Alabanin Institute of Statistics

Table 4 Road vehicles 1993-2016

               
YearRoad vehiclesCarsMotor HomesBuses/MinibusesTrucks and VansRoad tractorsAgricultural tractorsMotorcyclesTrailersTechnological machines
19931297075672875823108482511509710965
19941538866796081494227188421433912325
1995114074586826651257903334694612671
199611454067278761227774283855413497
199712625876822874730105315136453788
199814520190766922734378273141093990
1999149148922521230635266186032144250
20001859821145321680643301227438085261
20012165501335332081349600272134476436
20022339541485312102651960267034006367
20032639011747822169353900295738966673
20042746521900042506646809196648775930
20052846551951252945345437189671705574
200632034722511435973392792039116396303
200734962623793229506596451976138596708
20083780602648286645790541987183297217
200939798128123646594799011969208747403594
201041989329472937032843111997240227799592
201141062930097425669871291761240096871201
201239448529734129525060165509254925699165
201344595234169137567665260543266646081190
201449089937805345604868676642309756460225
201552206640368054642371011736330706787305
201656310643601358705074973967360967504445
Source: Alabanin Institute of Statistics

Table 5 Air transport activity 1993-2016

Source: Alabanin Institute of Statistics

AGRICULTURE
The main agriculture products in Albania are: tobacco, figs, olives, wheat, maize, potatoes, vegetables, fruits, sugar, beets, grapes, meat, honey, dairy products and tradicional medicine and aromatic plants.

According to data of Albanian Institute of Statistics (INSTAT) vegetable production in 2015 was 1,030,000 tonnes, increased by 8.4 % compared with the previous year and increased by 11.5 % compared with 2 years ago. Potatoes production in 2015 was 245,000 tonnes, increased by 2.1 % compared with the previous year. The highest level of potatoes production was achieved in the prefectures of Korca with 65,439 tonnes, followed by Fier with 33,273 tonnes and Elbasan with 32,457 tonnes.
Table 1. Agriculture production 2015

Agriculture production in 000 tonnes201320142015
Cereals702.9700.4695.5
Vegetables9249501,030,0
Potatoes236, 7240245
White beans 283028
Industrial crops4.65.44.7
Medicinal crops717.410.8
Forage6,048,06,100,06,000,0
Permanent crops
Fruit trees218220245
Olives929896
Citrus202130
Total grapes204203.7205
Sources: Albanian Institute of statistics (INSTAT)

Cattle: The number of cattle in the year 2015 was 504,169 heads, increased by +0.9 % in annual terms compared with 499,600 heads that was in the year 2014. The main category is dairy cow which represents 71 % of the total cattle herd.

Sheep: The number of sheep had no significant changes over the last years. In 2015 it was 1,918,000 head increased by +1.2 % compared with the year 2014. The main category is milked sheep which represents 74 % of the total herd.

Goats: In the year 2015 the number of goats was 932,000 heads, increased by +3.1 % compared with 904,000 heads that has been in the year 2014. Main category is milked goats with 75 % of the total herd.

Table 2. Type of farms 2012, 2013, 2014

Farms200220032004200520062007200820092010201120122013     
Crop with livestock349244357533351174340235328668331404298496305378294525299077301950305839.28974455
Crop without livestock373563731625784333403987037508576764810855622540864896649596.710255446
Livstock without crops71023824236920457472 - - - - -
With field crops381334384851375021372019366068364917352766350067344928348704342974347391.70247011
With tree crops334517350961141705137244149636148660144578151784155986170846159778161836.0325776
With fallow1405951269991035058840512351011338411501410513391251971378324184313.191977567
Total387930394849377427374517368997369598357027353486350654353341350916351605
Sources: Albanian Institute of statistics (INSTAT), Ministry of Agriculture; Rural Development and Water Administration

TOURISM
Tourism in Albania is one of the country’s most significant sectors.

Coastline on the Adriatic and Ionian sea (450 km) makes Albania attractive for foreign tourists.

Durres (Durrës) along Vlora and Saranda is the largest touristic center of Albanian coast of the Adriatic Sea. It is located 33 kilometers west of the capital Tirana, with whom is connected by modern highway. Durres is one of the oldest Albanian cities with several legacy from Roman times.

STATISTICS ON TOURISM

Table 1. Arrivals of foreigners and Albanians in Hotels 1995-2015

1995199619971998199920002001200220032004200520062007200820092010201120122013201420152016                     
Total142214618610316517017111175113130171212236255318250223297428
Foreigners41642322263234366134576367566574136150118161257
Albanians10115038647713313613550415667104156171181182100105136171
Source: Albanian Institute of Statistics (INSTAT)

Table 2. Arrivals of foreign citizens according to regions 2000-2016

 199519961997199819992000200120022003200420052006200720082009201020112012201320142015                     
Total211394108154215326395532277243344459547490539610801591394459791
Foreigners88144667396989214311890130136172130170185356353215260484
Albanians1232504281119228303389159153214323375360369425445238179199307
Source: Albanian Institute of statistics (INSTAT)

Table 3. Arrivals of foreigners by purpose February 2017

Period Feb-1642767Jan.-Feb,2016Jan.-Feb.2017                   
Arrivals of foreign citizens169556185721343090358478
Personal165699182010336665351832
Holidays15676306522998548269
Visit to friends and relatives88070922021235
Day Visits20924444349717201
Health treatment35539996
Religious 984517671
Others140055139452279815269697
Tranzit686366552089115263
Business and professional3857371164256646
Source: Albanian Institute of statistics (INSTAT)

According to Quarterly statistical bulletin (INSTAT) the arrivals of foreign citizens in Albania, in the fourth quarter 2016, were 738,899 compared with same period of 2015 increased by 11.0 %.
The departures of Albanian citizens were 1,123.714, increased 7.5 % for the same period.
According to Albanian Institute of Statistics number of foreign visitors entered for holiday and daily visits during third quarter 2016 was 185,799 while in the same quarter of the previous year, this number was 118,118 visitors. In the third quarter 2016, the arrivals of foreign citizens by land comprised 77.6 % while arrivals by air and sea comprised respectively 15.8 % and 6.6 % of total number of arrivals. In Albania, the number foreign citizens who come for personal purpose in this quarter was 723,437 and constituted in 97.9 % of the total number the arrivals of foreign citizens. Here are include visits for holiday visits, to friends and relatives, health and religious visits, etc. The number of foreign citizens for personal purpose increased by 10.4 % compared with the fourth quarter of 2015. Foreign citizens for business purposes constituted in 2.1 % of arrivals of foreign citizens. In this quarter, the number of foreign citizens visiting Albania from European region is 705,745and constitutes in 95.5 % of the total number of foreign citizens. The number of citizens from Western European countries was 35,471 citizens, compared with the fourth quarter 2015 increased by 5.2 %, while the number of citizens coming from Southern European countries is 611,975 and increased by 12.4 % compared with same quarter of previous year.

ENTERPRISES BY CLASSES
Statistical Business Register (SBR) include all legal unit registered to National Registration Centre (NRC) or to Tax offices. All legal units are identified by the unique code, NIPT, carried on economic activity in Albanian territory. Business Register is updated from administrative sources and different surveys conducted by Institute of Statistics and other statistical agencies.

STATISTICS:
-152,288 enterprises are active at the end of 2015 comparing with 112,537 active enterprises in 2014, of which 19,543 are farmers registered to tax offices with an unique code.
-163,661 local units carry out their economic activity in Albanian territory.
-56,787 enterprises are registered during 2015, of which 5.6 % are juridical persons.
-75 % of active enterprises are producers of services; “Wholesale trade, except of motor vehicles and motorcycles” dominate in total economy by 35.3 %.
– Big enterprises with 50 and more employed represent 1.1 % of total enterprises. Their contribution on employment is 46.2 %.
-3.9 of total active enterprises are foreign and joint enterprises, of which 57.7 % have origin from Italy and Greece.
-31.3 % of enterprises are directed by female. 37 % of active enterprises continue to exercise their economic activity since 2010.

Table 1. Active enterprises by legal form

Legal Forms
number

Female owner / administrator
 
num?r
number
%
Total152,28847,706* 31.3
Farmers19,5431,564* 8.0
Physical persons103,41440,208* 38.9
Juridical persons29,3315,934* 20.2
Limited Liability Companies 23,6434,356* 18.4
Joint Stock Companies 911145* 15.9
Public Enterprises935296* 31.6
Public Administration49887* 17.5
NGO, Intern. Organization2,410861* 35.7
Other Companies934190* 20.3
Source: Albanian Institute of Statistics

Table 2. Active enterprises by prefectures and legal form


Prefectures

Total
Farmers
Persons
Juridical Persons
%    

Total

Farmers

Physical Persons

Juridical Persons

Total
152,28819,543103,41429,331100100100100
Berat7,2052,4394,1296374.712.54.02.2
Dib?r2,850752,2305451.90.42.21.9
Durr?s13,125889,9323,1058.60.59.610.6
Elbasan11,4931,9278,2031,3637.59.97.94.6
Fier19,1996,62810,7041,86712.633.910.46.4
Gjirokast?r3,6613522,5997102.41.82.52.4
Kor??11,6094,0706,4461,0937.620.86.23.7
Kuk?s1,543881,0873681.00.51.11.3
Lezh?4,9023783,7008243.21.93.62.8
Shkod?r10,2992,2756,4531,5716.811.66.25.4
Tiran?54,23752938,42515,28335.62.737.252.1
Vlor?12,1656949,5061,9658.03.69.26.7
Source: Albanian Institute of Statistics

Table 3. Active enterprises by prefectures and ownership


Prefectures

Total
Shqiptare
Albanian

Foreigner and Join

Foreigner

Joint (Albanian + Foreign )
        

Albanian Dominance

Foreign Dominance
Total152,288146,3495,9394,0846861,169
Berat7,2057,1693619107
Dib?r2,8502,835155cc
Durr?s13,12512,48464137495172
Elbasan11,49311,355138703137
Fier19,19919,047152752651
Gjirokast?r3,6613,6016029922
Kor??11,60911,437172943444
Kuk?s1,5431,5212217cc
Lezh?4,9024,787115732319
Shkod?r10,29910,1131861173237
Tiran?54,23750,1154,1223,019397706
Vlor?12,16511,8852801922068
c ) Detajimi i m?tejsh?m c?non konfidencialitetitn
c ) Further details affects confidentiality
Source: Albanian Institute of Statistics

OTHER INFORMATION
Other