Euromoney Country Risk

EUROMONEY COUNTRY RISK

Read the latest analysis on sovereign, geo-political and structural risk

 
Get up to date country risk ratings in 186 countries

Member login



Lost your password?

Euromoney Country Risk

Euromoney Country Risk
List of countries.

Albania Albania

Overview Change score Analyses Experts
 
Sponsored section
Albania

Table of Content


EconomicPoliticalStructural

Euromoney Country Risk editor’s view

Albania has a Parliamentary Democracy headed by President Bamir Topi. He was elected in 2007 for a five year term, and is vice-chairman of the Democratic Party of Albania. Sali Berisha is the current Prime Minister of Albania and leader of the Democratic Party of Albania. Albania is an import-oriented economy.

Despite reforms, its export base remains small and undiversified. The country imports machinery and equipment, foodstuffs, textiles and chemicals. Their main exports include textiles and footwear, asphalt, metals and metallic ores, crude oil, vegetables, fruits and tobacco.


Albania – Quick View
ECR score42.77 (Mar 2011)
ECR rank92 (Mar 2011)
Economic
GDP (Q3 2010)USD 2.243 billion
GNI per capita PPP 2009USD 8,300
FDI inflow 2009USD 979 million
Inflation 20103.4%
Central bank assets 2010 (Jan- Nov)USD 3669.07 million
Unemployment rate Q4 201013.49%
Government deficit 2010USD 360.486 million
Tax revenue 2010USD 2829.142 million
Political
Government typeParliamentary Republic
Recent political crisisNA
Economic freedom score70th
Freedom of information score80th
Corruption perception index87th
Structural
Birth rate 200811.39 per ‘000
Population balance0-4 years – 7.18%
Population balance5-24 years – 35.23%
Population balanceAbove 60 years – 12.95%
Life expectancyMale – 72.9 years
Life expectancyFemale – 77.8 years
Mortality rate5.01 per ‘000
Literacy rate99%
Internet access43.5%

[Top] Economic Overview

Gross Domestic Product (GDP)

GDP of Albania for Q3 2010 was recorded at ALL 241.8 billion as compared to ALL 248 billion in Q2 2010.

Albania GDP

(Source: Institute of Statistics - Pdf)

GDP growth rate

Albania GDP growth rate

 

(Source: Institute of Statistics - Pdf)

Gross Domestic Product per capita

The nation’s GDP per capita at current price for the year 2010 is USD 3616.097.

(Source: IMF)

Gross National Income (GNI) per capita, PPP

The nation’s Gross National Income (GNI) per capita at PPP is USD 8,300 for the year (2009), a decrease of 2.12% as compared to 2008.

Albania GNI per capita

 

(Source: World Bank)

Foreign Trade

Foreign Trade (ALL million)

 

Exports

Imports

Trade Balance

2010

161,505

478,708

-317,203

2009

103,244

431,107

-327,863

2008

112,572

439,894

-327,322

2007

97,171

376,194

-279,023

2006

77,405

299,147

-221,742

2005

65,818

262,191

-196,373

2004

62,121

236,072

-173,951

2003

54,487

225,983

-171,496

2002

47,490

210,368

-162,877

2001

44,096

190,155

-146,059

2000

37,037

157,109

-120,072

(Source: Institute of Statisticsexcel sheet)

Income Tax

Income tax on individual income in Albania is taxed at a flat rate of 10%.

(Source: taxrates.cc)

Corporate Tax

The corporate tax rate in Albania is a flat 10%.

(Source: taxrates.cc)

Inflation Rate

The inflation, in terms of consumer price change (annual %), for 2010 was registered at 3.4% as compared to 3.7% in 2009.

Albania Inflation Rate

(Source: Institute of Statisticsexcel sheet)

Foreign Direct Investment (FDI)

The FDI inflow in 2009 amounted to USD 979 million, a slight decrease from FDI inflow in 2008 of USD 988 million.

Albania FDI inflow

 (Source: UNCTAD)

Banking Sector Assets

As of November 2010, the total banking sector assets amounted to ALL 387,477.5 million compared to ALL 359,552.4 million in 2009.

    

Balance Sheet – Assets of Bank of Albania (ALL million)

 

2010 (Jan - Nov)

2009

2008

Total assets

387,477.5

359,552.4

326,406.4

SDR holdings

8,337.3

7,546.1

641.8

Foreign currency

647.3

705.8

1 ,068.6

Deposits

35,855.4

54,391.6

64,087.6

Securities other than shares

301,028.7

243,142.8

218,119.8

Loans

18,124.3

3 3,885.2

2 4,318.6

Financial derivatives

6 9.4

1 0.7

-

Receivable accounts

11,394.6

1 3,279.2

1 2,891.3

Nonfinancial assets

12,020.8

6,590.9

5,278.7

(Source: Bank of Albania - Pdf)

[Top] Financial Indicators & Government Financial

Consumer Price Index (CPI)

In 2010, CPI of the country was recorded at 107.1 compared to 103.4 in 2009.This indicates that the increase in the prices of consumer goods has increased.

Albania Consumer Price Index

 

(Source: Institute of Statisticsexcel sheet)

Product Price Index (PPI)

PPI of the country is on steady rise since 2001. In 2010, PPI was registered at 109.2 compared to 108.8 in 2009.

Albania Product Price Index

 

(Source: Institute of Statisticsexcel sheet)

Interest rates

12-month interest rates (%)

 

Deposits

Loans

Treasury bill

2009

6.78

12.46

5

2008

6.93

11.75

5.5

2007

5.67

11.73

6.25

2006

5.23

12.93

6.25

2005

5.08

12.38

5.25

(Source: Bank of Albania - Pdf)

Money supply (Currency in Circulation)

The three measures of monetary aggregates are - M1, M2 and M3.

M1 includes Currency outside depository corporations and Current accounts and non-term deposits in national currency.

M2 includes M1 along with time deposits in national currency. 

M3 refers to M1 and deposits in foreign currency.

Money Supply (ALL million)

Period

M1

M2

M3

2010 (Jan-Nov)

266,864.6

593,264.7

961,426.3

2009

284,505.5

578,181.5

871,469.5

2008

282,862.3

555,004.7

815,704.6

2007

242,675.5

506,137.2

757,609.5

(Source: Bank of Albania - Pdf)

Official exchange rate

ALL per USD rate for the year 2009 was registered at 94.98. The exchange rate in November 2011 was 101.33 per USD.

Albania Exchange Rate

(Source: Bank of Albania - Pdf)

 

Government finances

Total Revenue and Expenditure

In 2010, total revenues amounted to ALL 333,658 million, an increase of 11.6% over 2009. In the same period, government expenditure amounted to ALL 371,767 million, a decrease of 2.13% over 2009.

Albania Government Revenue and Expenditure

(Source: Ministry of Finance - Pdf)

Tax Revenue

In 2010, tax revenues contributed 89.64% to the total revenues amounting to ALL 299,084 million.

(Source: Ministry of FinancePdf)

Public Sector Borrowing Requirement / Fiscal Balance

In 2010, the Government reported a deficit of ALL 38,109 million while in 2009, the deficit amounted to ALL 80,883 million.

(Source: Ministry of Finance - Pdf)

Balance of Payments

Balance of Payments (EUR million)

Year

2010

2009

2008

2007

Q3

Q2

Q1

Current account

-209.6

-216.7

-246.6

-1,345.5

-1,370.3

-824.2

Trade balance

-595.9

-482.9

-419.0

-2,303.7

-2,431.5

-2,104.0

Capital account

23.4

22.7

10.0

84.9

78.2

90.1

Financial account

129.6

161.0

115.3

956.6

1502.8

697.8

Net errors and

omissions

109.8

48.7

102.5

272.0

-18.7

202.6

Overall balance

53.3

15.7

-18.8

-32.0

191.9

166.2

Reserve assets

-53.3

-15.7

18.8

32.0

-191.9

-166.2

(Source: Bank of Albania - Pdf)

[Top] Labour Force and Employment Overview

Labour force data

Total labour force registered in Q4 2010 was 1,059,959 people; an increase of 0.07% over Q3 2010.

Labour force data

 

Labour force

Total employment

Total registered unemployment

2010

Q1

1,045,261

900,653

144,608

Q2

1,049,491

904,850

144,641

Q3

1,059,199

915,981

143,218

Q4

1,059,959

916,919

143,040

2009

Q1

1,114,161

972,851

141,310

Q2

1,114,166

972,831

141,335

Q3

1,113,580

971,518

142,062

Q4

1,042,618

899,278

143,340

(Source: Institute of Statisticsexcel sheet)

Sector Wise Employment

The agricultural private sector accounts for the maximum percentage of total employed people. The average number of people employed in the private agricultural sector for Q3 and Q4 2010 accounts to 506,664.

Albania Sector-wise employment

 

(Source: Institute of Statisticsexcel sheet)

Unemployment Rate

In Q4 2010, the unemployment rate decreased to 13.49% with the average number of registered unemployed people at 143,040.

Albania Unemployment Rate

 

(Source: Institute of Statisticsexcel sheet)

Minimum wage

Minimum wage limits prevailing in the country in the fourth quarter of 2010 is ALL 19,000 and has remained unchanged since the previous quarter. The minimum wage in the corresponding quarter of 2009 was ALL 18,000.

(Source: Institute of Statistics- excel sheet)

Level of Unionisation

The country has various independent trade unions. The two major trade union centres in the country are:

  •  Union of the Independent Trade Unions of Albania
  •  Confederation of the Trade Unions of Albania (KSSH)

(Source: icftu.org)

[Top] Political Stability

Albania has a Parliamentary Republic form of government. The power in the country is shared at three different levels – legislative, executive, and the judiciary. Legislative powers are exercised by the President and the Parliament. Executive powers are exercised by the government and the President. The judicial powers are free from legislative and executive powers and are executed by the courts of law.

Parliament: Assembly of the Republic of Albania

The country has a single chamber parliament with 140 members. The members of parliament are elected, by general elections, for a four year term.

The Parliament conducts its annual work in two sessions. The first session begins on the third Monday of January and the second session on the first Monday of September.

Government: Executive authority

The President of the Republic is the Head of State. The President is elected for five year term through a secret vote by the Assembly and by a majority of three-fifths of all its members.

Powers exercised by the President include:

  • addresses the Assembly
  • grants Albanian citizenship and permits it to be given up according to the law
  • on the proposal of the Prime Minister, appoints and withdraws plenipotentiary representatives of the Republic of Albania to other states and international organisations
  • accepts letters of credentials and the withdrawal of diplomatic representatives of other states and international organisations accredited to the Republic of Albania
  • signs international agreements according to the law
  • sets the date of the elections for the Assembly, for the organs of local power and for the conduct of referenda

Council of Ministers

The Council of Ministers consists of the Prime Minister, deputy prime minister, and ministers. The Council of Ministers exercises all functions that are not under the state or local government.

(Source: Albanian Constitution)

Regulatory Environment

The country’s economic freedom score is 64, making its economy the 70th freest in the 2011 Index of Economic Freedom.

Albania Business and Economic Freedom Score

(Source: heritage.org)

Corruption Perception

Albania is ranked 87th on the 2010 Corruption Perceptions Index (CPI). CPI measures the perceived level of public-sector corruption across 180 countries and territories around the world.

(Source: transparency.org)

Freedom of Information

Media in the country has the right of expression according to the constitution. However, media is not free from influence of political parties and government involvement. Journalists also face legal harassment in the country.

The country ranks 80th on the world Press Freedom Index 2010 conducted by rsf.org.

In Albania, there are about 150 newspapers including 23 dailies. Political parties publish their own newspapers and magazines.

Newspapers

  • Shekulli
  • Gazeta Shqiptare
  • Albanian Daily News
  • Koha Ditore
  • Korrieri
  • Koha Jone

(Source: BBC, rsf.org)

Judicial System

Judicial system in the country is comprised of:

  • High Council of Justice
  • General Procurate
  • Constitutional Court
  • Supreme Court
  • Appeal Court
  • District Court

The Supreme Court is the highest court in the country and is also the final court of appeal. The Supreme Court is comprised of the Chief Justice and 13 other judges.

(Source: e-albania)

[Top] Demographic Overview

The total population of Albania for the year 2009 was recorded at 3.19 million, an increase of 0.4% over the previous year.

(Source: Institute of Statisticsexcel sheet)

Gender representation in Albania is almost equal with males and females accounting for 50.1% and 49.9% respectively.

Albania Population by Gender

(Source: Institute of Statisticsexcel sheet)

Population by age

In 2009, the population in the age group 5-24 years accounted for the highest share, followed by the age group 25-44 years.

Population by age group

 

(Source: Institute of Statisticsexcel sheet)

As of 2008, the average life expectancy at birth for males and females was 72.9 years and 77.8 years respectively.

(Source: Institute of Statisticsexcel sheet)

Birth rate and Death rate

Albania saw an increase in crude birth rate and crude death rate in 2008.

Albania Crude Birth and Death Rate

 (Source: Institute of Statisticsexcel sheet)

Migration

As per United Nations’ estimates, the country had 89,106 international migrants in 2010; an increase of 7.8% over 2005.

International Migrant Stock

Year

Estimated number of international migrants at mid-year

International migrants

(% of total population)

1990

66,013

2

1995

71,154

2.3

2000

76,695

2.5

2005

82,668

2.7

2010

89,106

2.8

(Source: UN)

Ethnic groups

The major ethnic group in the country is Albanian. Other ethnic groups include Greeks, Vlachs, Roma, Serbs, Montenegrins, Macedonians, Balkan Egyptians, and Bulgarians.

(Source: state.gov)

Human Development Index

Albania is ranked 64th on the Human Development Index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and a basic standard of living (measured by purchasing power parity, PPP, income).

(Source: UNDP)

[Top] Soft Infrastructure

Education

The Ministry of Science and Education is responsible for education in the country.

Education in the country is divided into four levels

  • Pre-school education
  • Basic education
  • General secondary education – secondary schools
  • Higher education

Pre-School education is optional and is provided through Kindergartens and nursery schools before the age of six.

The duration for basic education is eight years, divided into two levels of four years each. Basic education consists of two levels: the lower level (grades I-IV) and the middle level (grades VI-IX).

Secondary education in the country consists of secondary schools (full-time and part-time) and secondary vocational schools.

The higher education system in Albania consists of eight universities, two academies and six non-public higher schools.

(Source: Ministry of Science and Education)

Literacy rate

In 2008, the adult literacy rate (% of people aged 15 and above) in Albania was 99%

(Source: World Bank)

Total Enrolled Students 

Total Enrolled Students in Albania

 

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

No: of children enrolled  in public kindergartens

74,914

 

75,455

76,278

 

75,781

 

74,642

 

74,460

 

No: of pupils graduated on basic education

 

52,029

 

51,028

 

54,034

 

55,785

 

58,216

 

59,519

 

No: pupils enrolled in  public secondary education

140,657

 

132,803

 

177,572

 

173,269

 

164,572

 

156,497

 

No: of students enrolled on tertiary education

116,292

 

93,206

 

90,202

 

86,178

 

74,157

 

63,257

 

(Source: Institute of Statistics)

Healthcare

In 2008, total health expenditure was 6.9% of GDP.

Healthcare Statistics, 2009

Hospital beds per 100,000

275.64

Physicians per 100,000

115.36

In-patient care admissions per 100

8.3

(Source: World Health Organisation)

[Top] Hard Infrastructure

The mass public transport in the country is primarily roadways.  Railways are operated by Albanian Railways.

Roadways

The total length of the country’s road network is approximately 18,000 kilometres. This includes 3,636 kilometres of national roads and about 11,000 kilometres of district and municipal roads. The remaining roads are under the jurisdiction of various organisations including private firms.

(Source: mppt.gov.al)

Railways

The total length of railway lines in operation is about 399 kilometres.

(Source: Institute of Statistics)

Albania Railway Transport 

Ports

The major ports in the country include Durres, Vlore, Sarande and Shengjin.

(Source: worldportsource.com)

Airports

Tirana International Airport is the major airport of the country. Other airports in the country include Gjader, Gjirokaster, Korce Northwest, and Kucova.

(Source: worldaerodata.com)

Telecommunications

The number of mobile subscribers has increased significantly in the past decade. In case of fixed line telephones, the total subscriber numbers have been fluctuating.

Albania Fixed Line subscribers

 

(Source: Institute of Statisticsexcel sheet)

Albania mobile subscribers

(Source: Institute of Statisticsexcel sheet)

Internet access

As of June 2010, the country had 1.3 million internet users as compared to just 2,500 users in 2000. The internet penetration rate increased from 0.1% in 2000 to 43.5% in 2010.

(Source: internetworldstats.com)

Euromoney country risk banner
 
All material subject to strictly enforced copyright laws.
© 2017 Euromoney Institutional Investor PLC.