Albania

Between 1990 and 1992 Albania ended 46 years of xenophobic Communist rule and established a multiparty democracy. The transition has proven challenging as successive governments have tried to deal with high unemployment, widespread corruption, a dilapidated physical infrastructure, powerful organized crime networks, and combative political opponents. Albania has made progress in its democratic development since first holding multiparty elections in 1991, but deficiencies remain. International observers judged elections to be largely free and fair since the restoration of political stability following the collapse of pyramid schemes in 1997. In the 2005 general elections, the Democratic Party and its allies won a decisive victory on pledges of reducing crime and corruption, promoting economic growth, and decreasing the size of government. The election, and particularly the orderly transition of power, was considered an important step forward. Although Albania's economy continues to grow ..., the country is still one of the poorest in Europe, hampered by a large informal economy and an inadequate energy and transportation infrastructure. Albania has played a largely helpful role in managing inter-ethnic tensions in southeastern Europe, and is continuing to work toward joining NATO and the EU. Albania, with troops in Iraq and Afghanistan, has been a strong supporter of the global war on terrorism.

Main Airports

Mother Tereza (TIA)

U.S. Embassy

103 Tirana Rruga Elbasanit, Tirana
telephone: [355] (4) 247-285

Statistics

GDP: purchasing power parity:

$18.97 billion

GDP - real growth rate:

5.5% (2005 est.)

GDP - per capita: purchasing power parity:

4,900 (2005 est.)

Inflation rate (consumer prices):

2.4% (2005 est.)

Labor force:

1.09 million (not including 352,000 emigrant workers) (2004 est.)

Exports:

$650.1 million f.o.b. (2005 est.)

Exports - partners:

Italy 63%, France 9.5%, US 5.6%, Germany 4.1% (2005)

Imports:

$2.473 billion f.o.b. (2005 est.)

Imports - partners:

Italy 33%, Greece 18.7%, Turkey 8.5%, Germany 6.2% (2005)

Population:

3,581,655 (July 2006 est.)

Population growth rate:

0.52% (2006 est.)

Population Below Poverty Line:

25% (2004 est.)

Major Industries:

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

Employing Workers: 113*

Registering Property: 76*

Enforcing Contracts: 99*

Closing a Business: 89*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Albania	Region
Procedures (number)	11	9.4
Time (days)	39	32

Albania Risk Assessment

Country Rating

Rating: D

A high-risk political and economic situation and an often very difficult business environment can have a very significant impact on corporate payment behaviour. Corporate default probability is very high.

Risk Assessment

Good performance in the export market and manufacturing in 2007 offset the repercussions of an electricity shortage and drought. Growth should accelerate slightly in 2008 driven by strong domestic demand and increased public sector investment. The economic dynamism, substantially underpinned by higher direct investment inflows, development of the financial sector, and a substantial volume of expatriate worker remittances, made it possible to significantly raise living standards in the country, even if it remains among the region's poorest.
 

The government will, however, have to take pains to quickly consolidate the national electric power company's financial situation, restructure the energy sector, and contain rising public spending in 2008 to limit inflationary pressures. The rapid credit expansion will also bear watching notwithstanding the limited development of financial intermediation. While the country continues to suffer, moreover, from the lack of diversification of its exports (centred on textiles), imports have continued to grow due to an inadequate domestic supply and rising energy costs. Albania has much ground to make up, furthermore, on infrastructure development and improvement of the business environment, which includes combating corruption and organised crime.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation