Telephone Numbers
Telephone Numbers
Economy of Albania
For detailed information +90 542 381 3868 'Call.
Albania's economic transition stumbled in 1997 when individual investors, constituting perhaps one-third of the country's population, fell prey to a pyramid finance scheme that devastated the national economy and led to weeks of anarchy. A UN-backed multinational force was called in to restore order. This turmoil, intensified by the Kosovo conflict at the end of the decade, led to fractious political polarization that slowed the development of the Albanian economy for several years. Nevertheless, economic reform continued, and by the beginning of the 21st century, Albania was recording modest annual growth in its gross domestic product (GDP). Remittances from Albanians working abroad constitute a significant amount of income. Although more than four-fifths of the economy has been privatized since the 1990s, the transformation process has been slow and uneven.
The former communist government allocated significant resources to the development of agriculture. Large-scale land reclamation, soil improvement, and irrigation programs, along with increased use of fertilizers, contributed to a significant expansion of agricultural production. Despite these advances, agricultural production continued to be hampered by the persistence of traditional farming methods and low mechanization, which required a relatively high number of farmworkers. Measures aimed at promoting the growth of food processing and agriculture were hindered by chronic shortages of basic foods, a failing infrastructure, a lack of raw materials, a shortage of skilled workers and managers, low productivity, and poor work discipline. However, agriculture has recorded annual growth in the post-communist era.
About half of the economically active population works in agriculture, which contributes about one-fifth of Albania's GDP. Although only a quarter of the total land area is arable, the country meets almost all of its food needs from domestic production. The main products are wheat, corn (maize), sugar beets, and watermelons. Apples, plums, grapes, walnuts, and chestnuts are also grown. Citrus fruits such as figs and olives are grown on the southern coasts wherever there is adequate irrigation. The main livestock are sheep, goats, cattle, and pigs.
Forests cover about one-third of Albania. However, the country lost much of its forest area mainly due to clearing for agriculture, pasture, and firewood, which occurred in the early 1990s. In the mid-1990s, the Albanian government collaborated with Italy and the World Bank to implement a forestry project that included strengthening Albania's environmental institutions and introducing sustainable forestry methods.
With access to both the Adriatic and Ionian seas, Albania's fishing industry has great potential; however, it has not been fully developed due to a lack of professional fishermen and the use of outdated equipment. The catch in the Ionian Sea includes carp, trout, sea bream, mussels, and crustaceans. The country's main fishing ports are in Sarandë, Vlorë, Shëngjin, and Durrës, the last of which is the largest and most important in the country. Port facilities have also been developed on the inland lakes. The government has tried to ban the fishing of the letnica trout (known as koran in Albanian), an endangered pink-fleshed fish found in Lake Ohrid. Family-run trout farms, shrimp farms, and hatcheries have grown in importance. Anchovies imported from other Mediterranean countries are canned for export.
For a small country, Albania has considerable resources. The southwestern part of the country is rich in petroleum and natural gas. The northeastern and central mountainous regions have significant reserves of metallic mineral deposits, including chromium, copper, and iron-nickel. Lignite (soft coal) deposits are found near Tirana, and natural asphalt is mined near Selenicë on the southwest coast. In the 1980s, Albania was a world leader in chromium production, but production fell sharply during the political transition from communism in the early 1990s. Despite increasing production in the mid-1990s, mining in all sectors declined again at the end of the century due to inadequate recovery methods, obsolete machinery and equipment, a lack of technical expertise, and poor organization that characterized Albania's efforts to exploit its resources.
The country is also rich in rivers and streams with significant hydroelectric potential. These were used quite effectively at the end of the communist era, making the country an energy exporter. A number of massive hydroelectric power plants were built, mainly on the Drin River, and more than half of the country's arable land was irrigated from artificial reservoirs created upstream of the dams. However, in the post-communist period, energy exports fell, and within the country, Albania suffered from inadequate electricity service to large parts of the country. Chronic energy shortages continued into the 21st century.
Albania had a growing trade deficit in the early years of the 21st century. Its main trade partners are Italy, Greece, Turkey, Germany, and China. It exports textiles, footwear, and base metals. The main import products are food products, machinery and equipment, spare parts, textiles, minerals, and metals.
Before 1991, the ruling communist party managed the entire economy of the country through a series of policies. All means of production were under state control, agriculture was completely collectivised, industry was nationalised and private enterprise was strictly prohibited. In addition, a provision of the constitution prohibited the government from seeking foreign aid, accepting loans or authorising foreign investment, which contributed to Albania's reputation as isolationist. In the post-communist period, economic decision-making was decentralised and restrictions on private trade were lifted. Foreign investment became pronounced in the mid-1990s, with assistance from the United States, the European Union and the International Monetary Fund. By the middle of that decade, Albania had the fastest growing economy on the continent, but as one of the poorest countries in Europe it was still seen as less developed.
+90 542 381 3868
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