Nestled in the heart of the Mediterranean, on the Adriatic and Ionian Seas, Albania is fast becoming one of the world’s interesting getaways and is now beginning to emerge from the shadows as one of the next investment destinations for overseas property buyers. No longer one of the “forgotten” states of Europe and still unspoiled by globalization, one quickly notices an inspiring mixture of civilizations and cultures making this European country truly unique. Located in between Greece, Macedonia, Kosovo, and Montenegro, and across the Adriatic from Italy, Albania boasts blue and turquoise seas, beautiful beaches, snow peaked mountains, rivers, lakes, and forests. As well as stunning nature, Albanians themselves are famous for their hospitality, and tourists are welcomed with heart-warming generosity.
The country is a member of the United Nations, the Organization for Security and Co-operation in Europe, Council of Europe, and World Trade Organisation. It is also a potential candidate for membership in the European Union and received a NATO membership invitation on 3 April 2008. With Albania having a developing economy and a government that is committed to economic reform, optimism around Albania is high.
Economic trends
Albania was the last central and eastern European country to adopt free-market reforms. Though the economy has improved during last few years (especially since 2003) Albania remains one of the poorest countries in Europe with per capita GDP estimated at USD 2,870 in 2006.The GDP growth rate is over 5% since 2006. IMF forecasts a growth rate of 6% in 2008; supported by domestic demand and public investments. The inflation is under control (estimated at 2.5% in 2007) but official unemployment rate is about 16%. Nearly 30% of the population lives below the poverty line. The country relies heavily on remittances from Albanians working abroad, mostly in Greece and Italy.
Main branches of industry
Albania continues to be dependent on the agricultural sector, which still contributes around 25% to its GDP and employs about 60% of the active population. The main crops grown in the country are grains (especially wheat and corn), cotton, tobacco, potatoes, and sugar beets. Albania is rich in mineral resources, notably petroleum, lignite, copper, chromium, limestone, salt, bauxite, and natural gas. Mining, food-processing, and manufacturing of textiles, clothes, footwear and cement are among the leading industries. Engineering, chemical, and iron & steel plants have also been setup, and the country has several hydroelectric power stations. The manufacturing sector contributes around 20% to GDP whilst the services sector (especially tourism) accounts for nearly 55%.
International trade
Albania's faces a severe negative trade imbalance. The share of foreign trade in country’s GDP touches nearly 70%. Though the government is trying to attract foreign investments it is being hampered by inadequate energy and transportation infrastructure available in the country. The top three export partners of Albania are Italy, Greece and Germany. The commodities mainly exported are footwear, textiles & clothes, iron & steel. The top three import partners are Italy, Greece and Turkey. Albania mainly imports machinery, mineral fuels & oils, electric & electronic equipment, and vehicles. Albania’s trade with EU member states accounts for nearly 75% of the total foreign trade.
