dor Dr. John L. WITHERS, II
embassy: Rruga e Elbasanit, Labinoti #103, Tirana
mailing address: US Department of State, 9510 Tirana Place, Dulles,
VA 20189-9510
telephone: [355] (4) 2247285
FAX: [355] (4) 2232222

Flag description:

red with a black two-headed eagle in the center

Economy
Albania

Economy - overview:

Lagging behind its Balkan neighbors, Albania is making the difficult
transition to a more modern open-market economy. The government has
taken measures to curb violent crime, and recently adopted a fiscal
reform package aimed at reducing the large gray economy and
attracting foreign investment. The economy is bolstered by annual
remittances from abroad of $600-$800 million, mostly from Albanians
residing in Greece and Italy; this helps offset the towering trade
deficit. Agriculture, which accounts for more than one-fifth of GDP,
is held back because of lack of modern equipment, unclear property
rights, and the prevalence of small, inefficient plots of land.
Energy shortages and antiquated and inadequate infrastructure
contribute to Albania's poor business environment, which make it
difficult to attract and sustain foreign investment. The completion
of a new thermal power plant near Vlore and improved transmission
line between Albania and Montenegro will help relieve the energy
shortages. Also, the government is moving slowly to improve the poor
national road and rail network, a long-standing barrier to sustained
economic growth. On the positive side, macroeconomic growth was
strong in 2003-07 and inflation is low and stable.

GDP (purchasing power parity):

$20.87 billion
note: Albania has a large gray economy that may be as large as 50%
of official GDP (2007 est.)

GDP (official exchange rate):

$10.62 billion (2007 est.)

GDP - real growth rate:

6% (2007 est.)

GDP - per capita (PPP):

$5,800 (2007 est.)

GDP - composition by sector:

agriculture: 21.2%
industry: 20.5%
services: 58.3% (2007 est.)

Labor force:

1.09 million (not including 352,000 emigrant workers) (September
2006 est.)

Labor force - by occupation:

agriculture: 58%
industry: 15%
services: 27% (September 2006 est.)

Unemployment rate:

13.2% official rate, but may exceed 30% due to preponderance of
near-subsistence farming (2007 est.)

Population below poverty line:

25% (2004 est.)

Household income or consumption by percentage share:

lowest 10%: 3.4%
highest 10%