Editing Economy of Albania (section)

==Macroeconomic trends==
This is a chart of [[Gross Domestic Product]] (GDP) of Albania in US dollars based on [[Purchasing Power Parity]] (PPP) from estimates by the [[International Monetary Fund]].<ref name=imf>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weorept.aspx?pr.x=50&pr.y=15&sy=2016&ey=2020&scsm=1&ssd=1&sort=country&ds=.&br=1&c=914&s=NGDP_RPCH%2CNGDPD%2CPPPGDP%2CNGDPDPC%2CPPPPC&grp=0&a= |title=World Economic Outlook Database, April 2019 |publisher=International Monetary Fund |website=IMF.org |access-date=7 September 2019 |archive-date=30 July 2020 |archive-url=https://web.archive.org/web/20200730221442/https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weorept.aspx?pr.x=50&pr.y=15&sy=2016&ey=2020&scsm=1&ssd=1&sort=country&ds=.&br=1&c=914&s=NGDP_RPCH%2CNGDPD%2CPPPGDP%2CNGDPDPC%2CPPPPC&grp=0&a= |url-status=live }}</ref>

{| class="wikitable"
|-
! Year || GDP
<small>(in Bil. US$ PPP)</small>
! GDP per capita
<small>(in US$ PPP)</small>
! GDP
<small>(in bil. US$ nominal)</small>
! [[List of countries by GDP (nominal) per capita|GDP per capita]] || [[List of countries by real GDP growth rate|GDP growth]]
|-
| 2016 ||34.0||$11,833||11.9||$4,127||3.3%
|-
| 2017 ||36.0||$12,521||13.1||$4,539 ||3.8%
|-
| 2018 ||38.4||$13,345||15.2||$5,289||4.2%
|-
| 2019 ||40.5||$14,102||16.0||$5,562 ||3.7%
|-
| 2023 ||44.0||$19,976||23.3||$8,800||3.6%
|}

For purchasing power parity comparisons, the US dollar is exchanged at 49 leks (2007 estimate). Mean wages were $300.83 per month in 2009.

Albania is a low-income country by Western European standards, with a GDP per capita lower than all countries in the EU. According to [[Eurostat]], Albania's GDP per capita (expressed in PPS – [[Purchasing power parity|Purchasing Power Standards]]) stood at 35% of the EU average in 2008. The unemployment rate in 2018 was 12.4%.<ref>{{cite web|url= http://www.instat.gov.al/media/4720/lfs_q2-2018.pdf |archive-url= https://ghostarchive.org/archive/20221009/http://www.instat.gov.al/media/4720/lfs_q2-2018.pdf |archive-date=2022-10-09 |url-status=live |title=Quarterly Labour Force Survey |website=instat.gov.al |date=11 September 2018 |access-date=13 January 2020}}</ref>

The results of Albania's efforts were initially encouraging. Led by the agricultural sector, real [[Gross domestic product|GDP]] grew by an estimated 111% in 1993, 89% in 1994, and more than 119% in 1995, with most of this growth in the private sector. Annual inflation dropped from 25% in 1991 to zero. The Albanian currency, the [[Lek (currency)|lek]], stabilised. Albania became less dependent on food aid. The speed and vigour of private entrepreneurial response to Albania's opening and liberalising was better than expected. Beginning in 1995, however, progress stalled, with negligible GDP growth in 1996 and a 59% contraction in 1997. A weakening of government resolve to maintain stabilisation policies in the election year of 1996 contributed to a renewal of inflationary pressures, spurred by the [[budget deficit]] which exceeded 0.12%. [[Inflation]] approached 0.20% in 1996 and 0.50% in 1997. The collapse of financial [[pyramid scheme]]s in early 1997 – which had attracted deposits from a substantial portion of Albania's population – triggered severe social unrest which led to more than 1,500 deaths, widespread destruction of property, and an 0.08% drop in GDP. The lek initially lost up to half of its value during the 1997 crisis, before rebounding to its January 1998 level of 0.00143 to the dollar. The new government, installed in July 1997, has taken strong measures to restore public order and to revive economic activity and trade.

Albania is currently undergoing an intensive [[Macroeconomics|macroeconomic]] restructuring regime with the [[International Monetary Fund]] and the [[World Bank]]. The need for reform is profound, encompassing all sectors of the economy. In 2000, the oldest commercial bank, [[Banka Kombetare Tregtare – BKT|Banka Kombetare Tregtare/BKT]] was privatised. In 2004, the largest commercial bank in Albania—then the Savings Bank of Albania—was privatised and sold to [[Raiffeisen Bankengruppe (Austria)|Raiffeisen Bank]] of [[Austria]] for US$124 million. Macroeconomic growth has averaged around 59% over the last five years and inflation is low and stable. 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 [[Albanian diaspora|annual remittances from abroad]] representing about 15% of GDP, mostly from Albanians residing their weekends in Greece and Italy; this helps offset the towering trade deficit. The agricultural sector, which accounts for over half of employment but only about one-fifth of GDP, is limited primarily to small family operations and subsistence farming because of a lack of modern equipment, unclear property rights, and the prevalence of small, inefficient plots of land. Energy shortages because of a reliance on hydropower, and antiquated and inadequate infrastructure contribute to Albania's poor business environment and lack of success in attracting new foreign investment. The completion of a new thermal power plant near Vlore has helped diversify generation capacity, and plans to improve transmission lines between Albania and Montenegro and Kosovo would help relieve the energy shortages. Also, with help from EU funds, the government is taking steps to improve the poor national road and rail network, a long-standing barrier to sustained economic growth.

Reforms have been taken especially since 2005. In 2009, Albania was the only country in Europe, together with Poland, San Marino, and Liechtenstein, to have economic growth; Albanian GDP real growth was 3.7%.<ref>{{cite web|url= https://www.cia.gov/library/publications/the-world-factbook/rankorder/2003rank.html?countryName=Albania&countryCode=al&regionCode=eu&rank=46#al |title=CIA – The World Factbook – Country Comparison: National product real growth rate|access-date=30 July 2010|publisher=CIA Factbook|url-status=dead|archive-url= https://web.archive.org/web/20100708035319/https://www.cia.gov/library/publications/the-world-factbook/rankorder/2003rank.html?countryName=Albania&countryCode=al&regionCode=eu&rank=46#al |archive-date=8 July 2010}}</ref> Year after year, the tourism sector has gained a growing share in the country's GDP.<ref>{{cite news | url=https://travellergists.com/albania-economy-in-europe | title=Albania Economy in Europe 2023 &#91;Facts & History&#93; | newspaper=Travellergists | date=26 December 2022 | last1=Arthur | first1=David | archive-date=19 October 2022 | access-date=19 October 2022 | archive-url=https://web.archive.org/web/20221019083359/https://travellergists.com/albania-economy-in-europe/ | url-status=live }}</ref>

Data published as of July 2012 by the National Institute of Statistics, INSTAT, show the economy contracted by 0.0002% in the first quarter of the year – a downturn blamed mainly on the [[european debt crisis|eurozone debt crisis]].<ref>{{cite web|url= http://www.balkaninsight.com/en/article/albanians-pessimistic-on-the-economy |title='Albanians Pessimistic on the Economy' |website=balkaninsight.com |date=26 June 2008 |access-date=25 November 2022}}</ref>

The informal sector makes up a portion of the economy, although its share remains unclear due to its secretive nature.<ref>{{cite web|url=https://travellergists.com/albania-economy-in-europe/|title=Albanian Gloom About Economy Facts 2022|date=18 October 2022|access-date=19 October 2022|archive-date=19 October 2022|archive-url=https://web.archive.org/web/20221019083359/https://travellergists.com/albania-economy-in-europe/|url-status=live}}</ref>

According to Santander Bank, foreign direct investment in Albania now accounts for 50% of its GDP.<ref name="Rapoza">{{cite web |url= https://www.forbes.com/sites/kenrapoza/2016/06/13/albania-becomes-latest-china-magnet/#38f24cfb11b0 |title=Albania Becomes Latest China Magnet |last=Rapoza |first=Kenneth |date=13 June 2015 |work=Forbes |access-date=10 February 2017 |quote=Chinese companies are replacing traditional European investing partners – namely Italy and Turkey – and helping to develop a country in dire need of modernization, particularly if it wants to move from its European Union candidacy status to a full blown member in the foreseeable future. |url-status=live |archive-url= https://web.archive.org/web/20170211082634/http://www.forbes.com/sites/kenrapoza/2016/06/13/albania-becomes-latest-china-magnet/#38f24cfb11b0 |archive-date=11 February 2017 }}</ref>

Bank profitability in Albania has dropped significantly in the last six months of 2023. Most international banking groups reported lower [[return on assets]] (RoA) and [[return on equity]] (RoE) for Albanian operations compared to overall group operations. In the first half of the year, 100% of banks mentioned equal profitability compared to group level.<ref>{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/20230288-cesee-bls-2023-h2 |title=Central, Eastern and South-Eastern Europe (CESEE) Bank Lending Survey: Second half of 2023 |date=2023-12-06 |publisher=European Investment Bank |isbn=978-92-861-5622-9 |language=EN}}</ref> One-third of Albania's parent banks are considering deleveraging, but all intend to maintain or increase their level of activity through subsidiaries.<ref>{{Cite web |last=Sejko |first=Gent |date=2023-12-11 |title=Gent Sejko: Competition and stability in the Albanian financial sector |url=https://www.bis.org/review/r231204n.htm |language=en |access-date=2023-12-20 |archive-date=2023-12-20 |archive-url=https://web.archive.org/web/20231220110942/https://www.bis.org/review/r231204n.htm |url-status=live }}</ref>