. The economy rebounded in 1993-95 after a severe depression
accompanying the collapse of the previous centrally planned system in
1990 and 1991. However, a weakening of government resolve to maintain
stabilization policies in the election year of 1996 contributed to
renewal of inflationary pressures, spurred by the budget deficit which
exceeded 12%. The collapse of financial pyramid schemes in early
1997-which had attracted deposits from a substantial portion of
Albania's adult population - triggered severe social unrest which led
to more than 1,500 deaths, widespread destruction of property, and an
8% drop in GDP. The new government installed in July 1997 has taken
strong measures to restore public order and to revive economic
activity and trade. The economy continues to be bolstered by
remittances of some 20% of the labor force which works abroad, mostly
in Greece and Italy. These remittances supplement GDP and help offset
the large foreign trade deficit. Most agricultural land was privatized
in 1992, substantially improving peasant incomes.

GDP: purchasing power parity-$4.5 billion (1997 est.)

GDP-real growth rate: -8% (1997 est.)

GDP-per capita: purchasing power parity-$1,370 (1997 est.)

GDP-composition by sector:
agriculture: 56%
industry: 21%
services: 23% (1995)

Inflation rate-consumer price index: 40% (1997 est.)

Labor force:
total: 1.692 million (1994 est.) (including 352,000 emigrant workers
and 261,000 domestically unemployed)
by occupation: agriculture (nearly all private) 49.5%, private sector
22.2%, state (nonfarm) sector 28.3% (including state-owned industry
7.8%); note-includes only those domestically employed

Unemployment rate: 14% (October 1997) officially, but likely to be as
high as 28%

Budget:
revenues: $624 million
expenditures: $996 million, including capital expenditures of $NA

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

Industrial production growth rate: 6% (1995 est.)

Electricity-capacity: 1.892 million kW (1995)

Electricity-production: 4.435 billion kWh (1995)

Electricity-consumption per capita: 1,314 kWh (1995)

Agriculture-products: wide range of temperate-zone crops and livestock

Exports:
total value: $228 million (f.o.b., 1996 est.)
commodities: asphalt, metals and metallic ores, electricity, crude
oil, vegetables, fruits, tobacco
partners: Italy, Greece, Germany, Belgium, US