Albania Economic Forecast

Albania is making progress transitioning to a free market economy, but it is still structural more reminscent of an economy in the Middle East or Africa than of one in Europe.

The Albanian government is also faced with the challenge of lowering the country’s crime rate by introducing reform packages that focus on attracting foreign investments to the bleak economy and create employment opportunities for the population.

Albania is making progress transitioning to a free market economy, but it is still structural more reminscent of an economy in the Middle East or Africa than of one in Europe.

The Albanian government is also faced with the challenge of lowering the country’s crime rate by introducing reform packages that focus on attracting foreign investments to the bleak economy and create employment opportunities for the population.

Albania GDP Forecast

Albania’s GDP in 2010 decline 2.6 percent to US$ 11.578 billion down from US$ 12.185 billion in 2009. In 2011, Albania’s GDP is expected to grow 3.67 percent to US$ 12.003 billion and up to US$ 15.64 billion in 2015.

Annual increase of foreign workers accounts for about 15 percent of GDP as most of the population consists of people from Italy and Greece. Trade imports and exports are largely fishery, agrarian, farming, and agricultural sectors being responsible for more than 50 percent of employment but only 20 percent of the GDP.

Farming in Albania uses low-technology equipment, limited plots of arable land and lack legal frameworks. Therefore, subsistence farming, along with smaller family owned and operated farms continue to struggle. Attracting foreign investment (FDI) is also a challenge for Albania.

The country has plans in place to improve transmissions lines running from Albania to Montenegro and Kosovo, which will also provide relief to the energy shortage problem Albania experiences with outdated and inadequate energy production capabilities. In addition, Albania is receiving financial aid from the European Union to better the road and railway network.

Albania Unemployment

The population for Albania in 2010 was 3.202 Million, up from 3.186 Million in 2009. Population growth is low, at an average 0.05 percent, only expecting to grow to 3.22 Million in 2011 and to 3.283 Million in 2015.

While Albania undergoes major macroeconomic transformation, substantial improvement has been seen in the economy since 2004, as the country remains among the poorest in the world. Approximately 12.4 percent of the population lives below the poverty line, up from 25.4 percent in 2002.

Albania’s unemployment rate in 2010 was 12.5 percent, expected to drop to 11.50  percent in 2011 and further to 10.5  percent by 2015. New infrastructures and the rise of tourism is making government officials optimistic about improving the unemployment figures.

Albania Inflation Rate & Current Account Balance Forecast

The Inflation Rate in Albania was 3.4  percent in 2010, down from 3.515 percent in 2009, and is expected to drop further to 2.9 percent in 2011 and come up to 3 percent in 2010.

Albania’ Current Account Balance in 2010 was US$ -1.061 Billion, 37.92 percent down from 2009. It’s expected to drop further in 2011 to US$-1.07 Billion but forecasted to improve to US$ -0.761 Billion in 2015 changing 2-10 percent per year between 2010 and 2015.