Economy - overview An extremely poor country by European standards, Albania is making thedifficult transition to a more open-market economy. The economy reboundedin 1993-95 after a severe depression accompanying the collapse of the previouscentrally planned system in 1990 and 1991. However, a weakening of governmentresolve to maintain stabilization policies in the election year of 1996 contributedto renewal of inflationary pressures, spurred by the budget deficit whichexceeded 12%. The collapse of financial pyramid schemes in early 1997 - whichhad attracted deposits from a substantial portion of Albania's adult population- triggered unrest in much of the south in early 1997. The economy continuesto be buoyed by remittances of some 20% of the labor force which works abroad,mostly in Greece and Italy. These remittances supplement GDP and help offsetthe large foreign trade deficit. Most agricultural land was privatized in1992, substantially improving peasant incomes. Overall economic performanceis likely to be substantially worse in 1997; inflation will easily top 50%and GDP may drop by 5% or more.

GDP purchasing power parity - $4.4 billion (1996 est.)

GDP - real growth rate 5% (1996 est.)

GDP - per capita purchasing power parity - $1,290 (1996 est.)

GDP - composition by sector
agriculture: 56%
industry: 21%
services: 23% (1995)

Inflation rate - consumer price index 17.4% (1996)

Labor force
total: 1.692 million (1994 est.) (including 352,000 emigrant workers and 261,000domestically unemployed)
by occupation : agriculture (nearly all private) 49.5%, private sector 22.2%, state(nonfarm) sector 28.3% (including state-owned industry 7.8%); note - includesonly those domestically employed

Unemployment rate 13% (1996 est.)

Budget
revenues: $624 million
expenditures : $996 million, including capital expenditures of $NA

Industries food processing, textiles and clothing; lumber, oil, cement, chemicals,mining, basic metals, hydropower

Industrial production growth rate 6% (1995 est.)

Electricity - capacity 1.533 million kW (1995)

Electricity - production 3.86 billion kWh (1994)

Electricity - consumption per capita 1,221 kWh (1995 est.)

Agriculture - products wide range of temperate-zone crops and livestock

Exports
total value: $205 million (f.o.b., 1995)
commodities : asphalt, metals and metallic ores, electricity, crude oil, vegetables,fruits, tobacco
partners: Italy, US, Greece, The Former Yugoslav Republic of Macedonia

Imports
total value: $680 million (f.o.b., 1995)
commodities : machinery, consumer goods, grains
partners: Italy, Greece, Bulgaria, Turkey, The Former Yugoslav Republic of Macedonia

Debt - external $500 million (1994 est.)

Economic aid
recipient : ODA, $NA

Currency 1 lek (L) = 100 qintars

Exchange rates leke (L) per US$1 - 150.00 (May 1997), 104.50 (1996), 92.70 (1995),94.62 (1994), 102.06 (1993), 75.03 (1992)

Fiscal year calendar year

NOTE: The information regarding Albania on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Albania Economy 1997 information contained here. All suggestions for corrections of any errors about Albania Economy 1997 should be addressed to the CIA.