Editing Economy of Albania

{{Short description|none}}

{{Infobox economy
| country = Albania
| image = Twin Towers Tirana, Albania 2017.jpg
| image_size = 310px
| caption = [[Tirana]], the economic hub of Albania
| currency = [[Lek (currency)|Lek]] (ALL, L)
| year = Calendar year
| organs = [[World Trade Organization|WTO]], [[Organization of the Black Sea Economic Cooperation|BSEC]], [[Central European Free Trade Agreement|CEFTA]], [[Open Balkan]]
| group = {{plainlist|
*[[Developing country|Developing/Emerging]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=International Monetary Fund |website=IMF.org |access-date=29 September 2019 |archive-date=10 October 2020 |archive-url=https://web.archive.org/web/20201010203013/https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2F+Emerging+market+and+developing+economies |url-status=live }}</ref>
*[[List of countries by GNI (nominal) per capita|Upper-middle income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=World Bank |website=datahelpdesk.worldbank.org |access-date=29 September 2019 |archive-date=28 October 2019 |archive-url=https://web.archive.org/web/20191028223324/https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |url-status=live }}</ref>
*[[Potential enlargement of the European Union|EU candidate]]}}
| population = 2,402,113 (2023)<ref>{{cite web |publisher=Instituti i Statistikës (INSTAT) |title=Censi i Popullsisë dhe Banesave në Shqipëri 2023: Rezultatet Kryesore{{spaced ndash}}Albania Population and Housing Census 2023: Main Results |url=https://www.instat.gov.al/media/13626/cens-2023-census-botim.pdf |access-date=4 September 2024 |archive-url=https://web.archive.org/web/20240814174433/https://www.instat.gov.al/media/13626/cens-2023-census-botim.pdf |archive-date=14 August 2024 |date=2024 |url-status=live}}</ref>
| gdp = {{plainlist|
*{{increase}} $32,013 billion ([[GDP (nominal)|nominal]], 2025)<ref name="IMFOCT24">{{cite web |date=22 October 2024 |title=World Economic Outlook Database, October 2024 |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/October/weo-report?c=914,&s=NGDP_R,NGDP_RPCH,NGDP,NGDPD,PPPGDP,NGDPRPC,NGDPRPPPPC,NGDPPC,NGDPDPC,PPPPC,PPPSH,&sy=2022&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |access-date=19 March 2025 |website=IMF.org |publisher=[[International Monetary Fund]]}}</ref>
*{{increase}} $70.353 billion ([[Purchasing power parity|PPP]], 2025)<ref name="IMFOCT24"/>
}}
| gdp rank = {{plainlist|
* [[List of countries by GDP (nominal)|114th (nominal, 2024)]]
* [[List of countries by GDP (PPP)|120th (PPP, 2024)]]
}}
| growth = {{plainlist|
*+4.86%&nbsp;(2022)
*+3.90%&nbsp;(2023)
*+4.00%&nbsp;(2024)
*+3.80%&nbsp;(2025 forecast)
*+3.90%&nbsp;(2026 forecast)<ref name="IMFOCT24"/>
}}
| per capita = {{plainlist|
*{{increase}} $13,364 (nominal, 2025)<ref name="IMFOCT24"/>
*{{increase}} $22,730 (PPP, 2025)<ref name="IMFOCT24"/>}}
| per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|81st (nominal, 2024)]]
*[[List of countries by GDP (PPP) per capita|86th (PPP, 2024)]]}}
| cpi = 42 out of 100 points (2024)<ref name="ti_2023">{{cite web |url=https://www.transparency.org/en/cpi/2023 |date=30 January 2024 |title=Corruption Perceptions Index |website=[[Transparency International]] |access-date=15 July 2024 |archive-date=30 January 2024 |archive-url=https://web.archive.org/web/20240130062042/https://www.transparency.org/en/cpi/2023 |url-status=live }}</ref> ([[Corruption Perceptions Index#Ranking over Time|80th]])
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 18.62%
*[[Secondary sector of the economy|industry]]: 21.39%
*[[Tertiary sector of the economy|services]]: 47.35%
*(2022)<ref name="CIAWFAL">{{cite web|url=https://www.cia.gov/the-world-factbook/countries/albania/|title=Albania|publisher=Central Intelligence Agency|website=CIA.gov|date=25 November 2024|access-date=24 January 2021|archive-date=17 December 2021|archive-url=https://web.archive.org/web/20211217104041/https://www.cia.gov/the-world-factbook/countries/albania/|url-status=live}}</ref>}}
| inflation = 1.9% (February 2025)<ref>{{Cite web |date=10 March 2025 |title=Consumer Price Index February 2025 |url=https://www.instat.gov.al/media/14974/cpi_february_2025.pdf |url-status=live |access-date=19 March 2025 |website=[[Institute of Statistics (Albania)]]}}</ref>
| gini = 33.0 {{color|darkorange|medium}} (2021)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/tessi190/default/table?lang=en |title=Gini coefficient of equivalised disposable income - EU-SILC survey |publisher=Eurostat |access-date=28 March 2023 |archive-date=9 October 2020 |archive-url=https://web.archive.org/web/20201009091832/https://ec.europa.eu/eurostat/databrowser/view/tessi190/default/table?lang=en |url-status=live }}</ref>
| hdi = {{plainlist|
*0.789 {{color|green|high}} maximum (2022, [[List of countries by Human Development Index|74th]])<ref>{{cite web |url=http://hdr.undp.org/en/indicators/137506 |title=Human Development Index (HDI) |publisher=Human Development Report HDRO (Human Development Report Office) United Nations Development Programme |access-date=24 September 2022 |archive-date=15 December 2019 |archive-url=https://web.archive.org/web/20191215174637/http://hdr.undp.org/en/indicators/137506 |url-status=live }}</ref>
*0.687 {{color|darkorange|medium}} real (2022, [[List of countries by inequality-adjusted HDI|IHDI 60th]])<ref>{{cite web |title=Inequality-adjusted HDI (IHDI) |url=http://hdr.undp.org/en/indicators/138806 |work=United Nations Development Programme |access-date=13 October 2022 |archive-date=25 June 2016 |archive-url=https://web.archive.org/web/20160625120421/http://hdr.undp.org/en/indicators/138806 |url-status=live }}</ref>}}
| poverty = {{plainlist|
*22% in poverty (2020)<ref>{{cite web |url=https://data.worldbank.org/indicator/SI.POV.NAHC?locations=AL |title=Poverty headcount ratio at national poverty lines (% of population) |publisher=World Bank |website=data.worldbank.org |access-date=18 February 2023}}</ref>
*14% on less than $6.85/day (2020)<ref>{{cite web |url=https://data.worldbank.org/indicator/SI.POV.UMIC?locations=AL |title=Poverty headcount ratio at $6.85 a day (2017 PPP) (% of population) - Albania |publisher=World Bank |website=data.worldbank.org |access-date=18 February 2023 |archive-date=29 January 2023 |archive-url=https://web.archive.org/web/20230129202917/https://data.worldbank.org/indicator/SI.POV.UMIC?locations=AL |url-status=live }}</ref>
*46.6% at risk of poverty or social exclusion (AROPE, 2021)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/tepsr_lm410/default/table?lang=en |title=People at risk of poverty or social exclusion by sex |publisher=Eurostat |access-date=13 October 2023}}</ref>}}
| labor = {{plainlist|
*1.376.643 (2023)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=AL&name_desc=false |title=Labor force, total - Albania |publisher=World Bank |website=data.worldbank.org |access-date=11 January 2020 |archive-date=31 July 2020 |archive-url=https://web.archive.org/web/20200731152532/https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=AL&name_desc=false |url-status=live }}</ref>
*75.5% employment rate (Q4 2024)<ref name=anketaq424>{{cite web|url= https://www.instat.gov.al/al/temat/tregu-i-pun%C3%ABs-dhe-arsimi/pun%C3%ABsimi-dhe-papun%C3%ABsia/publikimet/2024/anketa-tremujore-e-forcave-t%C3%AB-pun%C3%ABs-t4-2024/ |title=Anketa Tremujore e Forcave të Punës, T4 - 2024 |website=instat.gov.al |date=2025 |access-date=15 March 2025}}</ref>}}
| occupations = {{plainlist|
*agriculture: 21.4%
*industry: 28.3%
*services: 50.3%
*(2024)<ref name="CIAWFAL"/>}}
| unemployment = {{plainlist|
*8.8% (Q4 2024)<ref name=anketaq424 />
*Youth (15-29) rate: 19.1% (Q4 2024)}}<ref name=anketaq424 />
| average gross salary = [[List of European countries by average wage|ALL 83.401/ €850/ $920 monthly (Q4 2024)]]
[https://www.instat.gov.al/al/temat/tregu-i-pun%C3%ABs-dhe-arsimi/pagat/publikimet/2024/statistikat-e-pagave-t4-2024/]
| average net salary = $850-900 per month
| industries = footwear, apparel and clothing; tourism, oil, cement, chemicals, mining, basic metals, Food and beverages, hydropower, auto parts
| exports = $4.25 billion (2023)<ref name="CIAWFAL"/><ref>{{cite web|url= https://oec.world/en/profile/country/alb/ |title=Albania 2023, export/import |publisher=Observatory of Economic Complexity |first=Alexander |last=Simoes |access-date=13 January 2020}}</ref>
| export-goods = apparel and clothing, footwear; asphalt, metals and metallic ores, crude oil; cement and construction materials, vegetables, fruits, tobacco, processed foods and beverages, hydropower, automotive parts
| export-partners = {{plainlist|
*{{flag|Italy}} 40.8%
*{{flag|Greece}} 12.7%
*{{flag|Spain}} 6.06%
*{{flag|Germany}} 4.9%
*{{flag|China}} 4.2%
*{{flag|Kosovo}} 4.1%
*{{flag|North Macedonia}} 2.8%
*{{flag|Czech Republic}} 2.5%
*{{flag|Serbia}} 2%
*{{flag|United States}} 1.8%
*{{flag|Turkey}} 1.6%
*(2022)<ref name="OEC">{{cite web |title=Foreign trade partners of Albania |url=https://oec.world/en/visualize/tree_map/hs92/export/alb/show/all/2022/ |publisher=[[The Observatory of Economic Complexity]] |access-date=7 April 2023 |archive-date=2 August 2023 |archive-url=https://web.archive.org/web/20230802223841/https://oec.world/en/visualize/tree_map/hs92/export/alb/show/all/2022/ |url-status=live }}</ref>}}
| imports = $8.76 billion (2023)<ref name="CIAWFAL"/><ref>{{cite web|url= https://oec.world/en/profile/country/alb/ |title=Albania 2023, export/import |publisher=Observatory of Economic Complexity |access-date=13 January 2020}}</ref>
| import-goods = [[machinery]] and equipment, [[foodstuff]]s, [[textile]]s, [[chemicals]]
| import-partners = {{plainlist|
*{{flag|Italy}} 25.2%
*{{flag|Greece}} 21.3%
*{{flag|Kosovo}} 14.8%
*{{flag|Turkey}} 10.4%
*{{flag|China}} 7.7%
*{{flag|Germany}} 4.7%
*{{flag|Serbia}} 2.9%
*{{flag|Russia}} 1.75%
*{{flag|Bulgaria}} 1.74%
*{{flag|Hungary}} 1.5%
*{{flag|North Macedonia}} 1.4%
*(2022)<ref name="OEC"/>}}
| current account = −$1.050 billion (2022)<ref name="CIAWFAL"/>
| FDI = {{plainlist|
*10.074 billion (2021)<ref name="CIAWFAL"/>
*Abroad: N/A}}
| gross external debt = $8.5 billion (2023)<ref name="CIAWFAL"/>
| debt = 55.5% of GDP (2024)<ref name="Ministry of Finance">{{cite web|date=31 March 2020 |title=Buletini Statistikor I Borxhit |trans-title=Debt Statistical Bulletin |url= https://www.financa.gov.al/wp-content/uploads/2020/04/BULETINI-I-BORXHIT-III-MUJORI-PARE-2020-shqip.pdf |url-status=live |publisher= [[Ministry of Finance and Economy (Albania)]]|language=sq|archive-url= https://web.archive.org/web/20201119072242/http://www.financa.gov.al/wp-content/uploads/2020/04/BULETINI-I-BORXHIT-III-MUJORI-PARE-2020-shqip.pdf |archive-date=2020-11-19 }}</ref>
| revenue = 5.4 billion (2022)<ref name="CIAWFAL"/>
| expenses = 6.4 billion (2022)<ref name="CIAWFAL"/>
| balance = −3% (of GDP) (2022)<ref name="CIAWFAL"/>
| credit = {{plainlist|
*[[S&P Global Ratings|Standard & Poor's]]:
*BB (Stable)<ref>{{cite web |title=S&P Global Ratings |url=https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3341632 |website=disclosure.spglobal.com |access-date=26 April 2025}}</ref>
*[[Moody's]]:
*Ba3 (Stable)<ref>{{cite web |title=Moody's - credit ratings, research, and data for global capital markets |url=https://www.moodys.com/research/Government-of-Albania-Ba3-stable-Regular-update-Credit-Opinion--PBC_1439806 |website=www.moodys.com |access-date=26 April 2025}}</ref>
}}
| aid = recipient: [[Official Development Assistance|ODA]]: $366 million (top donors were [[Italy]], [[European Union|EU]], [[Germany]]) (2003)
| reserves = $5.634.561 billion (2021)<ref>{{cite web |url=https://knoema.com//atlas/Albania/International-reserves |title=Albania International reserves, 1960-2018 |website=Knoema |access-date=13 January 2020 |archive-date=31 December 2019 |archive-url=https://web.archive.org/web/20191231191529/https://knoema.com/atlas/Albania/International-reserves |url-status=live }}</ref>
| cianame = albania
}}
The '''economy of [[Albania]]''' went through a process of transition from a [[Planned economy|centralized economy]] to a market-based economy on the principles of the [[free market]].

Albania's economy is based on the service (54.1%), agriculture (21.7%), and industrial (24.2%) sectors.<ref name="CIAWFAL"/> The country has some natural resources, and the economy is mainly bolstered by [[Agriculture in Albania|agriculture]], food processing, lumber, oil, cement, chemicals, mining, basic metals, [[Renewable energy in Albania|hydro power]], [[Tourism in Albania|tourism]], textile industry, and petroleum extraction. The strongest sectors are [[Renewable energy in Albania|energy]], mining, metallurgy, agriculture, and tourism. Primary industrial exports are clothing and chrome.

Tourism has been a notable source of national income, particularly during the summer months. With over 6.4 million tourists visiting Albania  in 2019, tourism generates revenue in excess of $2.4 billion annually.<ref>{{cite web |title=Albania tourism data |url=https://www.worlddata.info/europe/albania/tourism.php |website=worlddata.info |access-date=2 February 2023 |archive-date=8 February 2023 |archive-url=https://web.archive.org/web/20230208234722/https://www.worlddata.info/europe/albania/tourism.php |url-status=live }}</ref>

==History==
[[File:GDP per capita development of Albania.jpg|thumb|right|GDP per capita development of Albania since 1913]]

Following the [[Fall of communism in Albania|collapse of the communist regime]] in 1990, Albania experienced a mass exodus of [[refugee]]s to [[Italy]] and [[Greece]]. The country attempted to transition to [[autarky]], which eventually succeeded. Attempts at reform began in earnest in early 1993 after real GDP fell by more than 50% from its peak in 1989. The country currently suffers from high organised crime and high [[Corruption in Albania|corruption]] rates.

The democratically elected government that assumed office in April 1992 launched an ambitious economic reform program to halt economic deterioration and put the country on the path toward a market economy. Key elements included price and exchange system [[liberalisation]], fiscal consolidation, monetary restraint, and a firm income policy. These were complemented by a comprehensive package of structural reforms including privatisation, enterprise, and financial sector reform, and the creation of the legal framework for a market economy and private sector activity. Most agriculture, state housing, and small industry were privatised. This trend continued with the privatisation of transport, services, and small and medium-sized enterprises.

In 1995, the government began privatising large state enterprises. After reaching a low point in the early 1990s, the economy slowly expanded again, reaching its 1989 level by the end of the decade.<ref>{{cite web|url= http://earthtrends.wri.org/text/economics-business/variable-638.html |title=What We Do|access-date=3 March 2015 |url-status=live |archive-url= https://web.archive.org/web/20100213054226/http://earthtrends.wri.org/text/economics-business/variable-638.html |archive-date=13 February 2010}}</ref>

==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>

==Challenges and solutions==

{{Economy of Albania}}

Reforms in Albania are constrained by limited administrative capacity and low income levels, which make the population particularly vulnerable to [[unemployment]], [[Volatility (finance)|price fluctuation]], and other variables that negatively affect income.{{Citation needed|date=June 2016}} The economy continues to be bolstered by remittances of some of the labour force that works abroad. These remittances supplement GDP and help offset the large foreign trade surplus. Most agricultural land was privatised in 1992, substantially improving peasant incomes.{{Citation needed|date=June 2016}} In 1998, Albania recovered the 0.8% drop in GDP of 1997 and pushed ahead by 79% in 1999. International aid has helped defray the high costs of receiving and returning refugees from the [[Kosovo conflict]]. Large-scale investment from outside is still hampered by poor infrastructure; lack of a fully functional banking system; untested or incompletely developed investment, tax, and contract laws; and an enduring mentality that discourages initiative.{{Citation needed|date=June 2016}}

===Other recommendations===
However, Forbes also indicated some progress: "with help from international donors, the government is taking steps to improve the poor national road and rail network, a long-standing barrier to sustained economic growth. Inward FDI has increased significantly in recent years as the government has embarked on an ambitious program to improve the business climate through fiscal and legislative reforms. The government is focused on the simplification of licensing requirements and tax codes, and it entered into a new arrangement with the IMF for additional financial and technical support."<ref>{{cite web |url= https://www.forbes.com/places/albania/ |title=Best Countries for Business |date=December 2016 |work=Forbes |access-date=February 8, 2017 |url-status=live |archive-url= https://web.archive.org/web/20170211083456/http://www.forbes.com/places/albania/ |archive-date=February 11, 2017 }}</ref>

The [[International Monetary Fund]]'s January 24, 2017 report also offered some positive reinforcement: "Economic program remains on track, good progress in implementing structural reforms, [[Bank of Albania]]'s accommodative monetary policy stance remains appropriate". The IMF inspectors who visited [[Tirana]] provided the following action plan: "Going forward, the main priorities should be: to continue expanding revenue to strengthen public finances and to ensure debt sustainability, reduce NPLs to strengthen financial stability and support credit recovery and advance structural reforms to improve the business climate. Important progress has been made in these areas, and further efforts are needed to cement these gains. In this regard, strengthening tax administration, broadening the tax base, and introducing a value-based property tax remain important objectives. Improved public financial management will help ensure more efficient public spending and control of arrears. Rapid implementation of the strategy for resolving non-performing loans is needed to strengthen lending to the private sector. Structural reforms to enhance the business environment, address infrastructure gaps, and improve labour skills will be crucial to strengthen competitiveness."<ref>{{cite web |url= https://www.imf.org/en/News/Articles/2017/01/24/PR1717-Albania-IMF-Reaches-Staff-Level-Agreement-for-Completion-of-Ninth-Tenth-Reviews |title=IMF Reaches Staff-Level Agreement for Completion of Ninth and Tenth Reviews of Albania's Extended Arrangement |date=January 24, 2017 |work=International Monetary Fund |access-date=February 8, 2017 |url-status=live |archive-url= https://web.archive.org/web/20170211081307/https://www.imf.org/en/News/Articles/2017/01/24/PR1717-Albania-IMF-Reaches-Staff-Level-Agreement-for-Completion-of-Ninth-Tenth-Reviews |archive-date=February 11, 2017 }}</ref>

===Application of Albania to the European Union===
{{Main|Accession of Albania to the European Union}}
Albania applied for membership in the [[European Union]] in 2009. It is expected such membership would benefit Albania's economy. The country received official candidate status in 2014, but was twice denied full membership.<ref>{{cite web |url= https://www.bbc.com/news/world-europe-17679574 |title=Albania country profile |date=December 15, 2016 |work=BBC News |access-date=February 8, 2017 |quote=The [2013] election was closely monitored by the European Union, which has twice rejected Albania's membership application and warned that the poll would be ''a crucial test'' for its further progress towards integration in the bloc. |url-status=live |archive-url= https://web.archive.org/web/20170103201731/http://www.bbc.com/news/world-europe-17679574 |archive-date=January 3, 2017 }}</ref> The [[European Parliament]] warned Albanian government leaders in early 2017 that the [[2017 Albanian parliamentary election]] must be "free and fair" before negotiations could begin to admit the country into the EU. The MEPs also expressed concern about the country's "selective justice, corruption, the overall length of judicial proceedings and political interference in investigations and court cases" but the EU Press Release expressed some optimism: "It is important for Albania to maintain today's reform momentum and we must be ready to support it as much as possible in this process".<ref>{{cite web |url= http://www.europarl.europa.eu/news/bg/news-room/20170131IPR60322/foreign-affairs-meps-assess-reform-efforts-in-albania-and-bosnia-and-Herzegovina |title=Foreign affairs MEPs assess reform efforts in Albania and Bosnia and Herzegovina |date=January 31, 2017 |work=European Parliament |access-date=February 8, 2017 |quote=Albania needs to implement EU-related reforms credibly, and ensure that its June parliamentary elections are free and fair, if it is to start EU accession negotiations |url-status=dead |archive-url= https://web.archive.org/web/20170211080700/http://www.europarl.europa.eu/news/bg/news-room/20170131IPR60322/foreign-affairs-meps-assess-reform-efforts-in-albania-and-bosnia-and-Herzegovina |archive-date=February 11, 2017 }}</ref><ref>{{cite web |url=http://www.express.co.uk/news/world/761758/Albania-Bosnia-Herzegovina-European-Union-membership-democratic-values |title=Albania and Bosnia fail to impress at EU membership meeting over democratic value concerns |last=Culbertson |first=Alix |date=February 1, 2017 |work=Express Newspapers Ltd., UK |access-date=February 8, 2017 |quote=Albania and Bosnia have stumbled at the first hurdle of becoming fully-fledged European Union (EU) members after MEPs questioned the credibility of their democratic values. |archive-date=May 12, 2021 |archive-url=https://web.archive.org/web/20210512122552/https://www.express.co.uk/news/world/761758/Albania-Bosnia-Herzegovina-European-Union-membership-democratic-values |url-status=live }}</ref> In May 2019, European Commissioner [[Johannes Hahn]] recommended that the EU open membership talks with Albania.<ref name="European Western Balkans Start Talks">{{cite web |title=EC: Albania and North Macedonia to open the negotiations |url=https://europeanwesternbalkans.com/2019/05/29/ec-albania-north-macedonia-open-negotiations/ |work=European Western Balkans |access-date=2 June 2019 |date=29 May 2019 |archive-date=31 May 2019 |archive-url=https://web.archive.org/web/20190531174227/https://europeanwesternbalkans.com/2019/05/29/ec-albania-north-macedonia-open-negotiations/ |url-status=live }}</ref>

Albania also needs to continue to improve its infrastructure, particularly highways within its borders and connecting the country to its neighbours. Once there is evidence of significant progress on this front, the country's chances of acceptance into the EU should improve. Discussions took place during 2015 to secure funding to do so.<ref name="Rapoza"/>

By 2016, China became one of the major investors in Albania having purchased drilling rights to the oil fields of Patos-Marinzë and Kuçovë (from a Canadian company) and Tirana International Airport SHPK. China Everbright and Friedmann Pacific Asset Management will operate the airport until 2025. As of March 2016, China was the country's main trading partner, with 7.7% of the country's total international trade; that is far more than the trade with Greece and Turkey.<ref name="Mejdini">{{cite web |url=http://www.balkaninsight.com/en/article/chinese-investments-raise-eyebrows-in-albania-05-02-2016 |last=Mejdini |first=Fatjona |date=3 May 2016 |title=Chinese Investments Raise Eyebrows in Albania |work=Balkan Insight |access-date=10 February 2017 |archive-date=2 July 2017 |archive-url=https://web.archive.org/web/20170702101439/http://www.balkaninsight.com/en/article/chinese-investments-raise-eyebrows-in-albania-05-02-2016 |url-status=live }}</ref>

A 2018 analysis of six key categories indicated that Albania continues to experience infrastructure problems that present challenges to businesses and further economic opportunities.<ref>{{cite journal |last1=Bahhouth |first1=Victor |last2=Ziemnowicz |first2=Christopher |title=Meeting the Global Challenges of Doing Business in the Five Candidate Countries on the Road to Join the European Union |journal=Journal of the Knowledge Economy |date=March 2018 |volume=10 |issue=3 |pages=1297–1318 |doi=10.1007/s13132-018-0531-3 |s2cid=158074120 |quote=Albania failed to show any strength on the six dimensions.}}</ref>

==Sectors==

===Primary sector===
{{Main|Agriculture in Albania|Albanian wine}}

{{multiple image
 |align = right
 |total_width =400

 |image1 = Albaniens_kust.jpg
 |width1 = 250 |height1 =

 |image2 = Figs (3548354141).jpg
 |width2 = 260 |height2 =

 |image3 = Vinyard Përmet.jpg
 |width3 = 280 |height3 =

 |footer =The [[Albanian Riviera]] is famous for its [[olive]] and [[citrus]] [[plantation]]s. '''left''' [[Albania]] is the 9th largest producer of [[Figs]] in the world. '''center''' Vineyard in [[Përmet]]. '''right'''}}

During the communist regime, Albania's agriculture was heavily centralised integrated with agriculture-related industries, and state-run. Today, agriculture in [[Albania]] employs 47.8% of the population and about 24.31% of the land is used for agricultural purposes. Agriculture contributes to 18.9% of the country's [[GDP]]. The main agricultural products in Albania are [[tobacco]], [[fruit]]s including [[Orange (fruit)|oranges]], [[lemon]]s, [[Ficus|figs]], [[grape]]s, [[vegetable]]s such as [[olive]]s, [[wheat]], [[maize]], [[potato]]es but also [[sugar beet]]s, [[meat]], [[honey]], [[dairy product]]s, and [[traditional medicine]] and aromatic plants.

[[Albanian wine]] is characterised by its unique sweetness and indigenous varieties. It has one of Europe's longest histories of [[viticulture]].<ref name="winealbania1">http://www.winealbania.com {{webarchive|url= https://web.archive.org/web/20110208101841/http://winealbania.com/ |date=2011-02-08 }} Wine Albania Portal</ref> [[Albania]] produced an estimated 17,500 tonnes of [[wine]] in 2009.<ref>{{cite web |url= http://faostat.fao.org/site/636/DesktopDefault.aspx?PageID=636#ancor |title= Wine production (tons) |publisher= [[Food and Agriculture Organization]] |page=28 |access-date=2011-04-18| archive-url= https://web.archive.org/web/20110520105103/http://faostat.fao.org/site/636/DesktopDefault.aspx?PageID=636| archive-date= 20 May 2011 | url-status= live}}</ref> During communism, the production area expanded to some {{convert|20000|ha}}.<ref name="winealbania1"/> Today's Albania region was one of the few places where the vine was naturally grown during the ice age. The oldest found seeds in the region are 40,000 to 60,000 years old.<ref>{{cite book|first=Tom |last=Stevenson|title=The Sotheby's Wine Encyclopedia |year=2011 |publisher=Dorling Kindersley |isbn=9781405359795}}</ref> Ancient Roman writer [[Pliny the Elder|Pliny]] describes [[Illyrians|Illyrian]] wine as "very sweet or luscious" and refers to it as "taking the third rank among all the wines".<ref>{{cite book |url= https://books.google.com/books?id=O575C2_7LCkC&q=albanian+wine&pg=PA41 |title= The Laws of Fermentation and the Wines of the Ancients |date= July 2010 |publisher= Bronson Press |page=41 |isbn= 9781446029565 |access-date=2011-04-10}}</ref> Albanian families are traditionally known to grow grapes in their gardens for producing wine and [[Rakia]].

Albania produced in 2018:

* 391 thousand tons of [[maize]];
* 288 thousand tons of [[tomato]];
* 254 thousand tons of [[potato]];
* 240 thousand tons of [[wheat]];
* 239 thousand tons of [[watermelon]];
* 184 thousand tons of [[grape]];
* 120 thousand tons of [[cucumber]];
* 117 thousand tons of [[olive]];
* 108 thousand tons of [[apple]];
* 100 thousand tons of [[onion]];
* 81 thousand tons of [[bell pepper]];

In addition to smaller productions of other agricultural products, like [[melon]] (41 thousand tons), [[plum]] (41 thousand tons), [[oat]] (34 thousand tons), [[sugar beet]] (27 thousand tons), [[Common fig|fig]] (24 thousand tons), [[peach]] (19 thousand tons) and [[pear]] (13 thousand tons).<ref>{{Cite web |url=http://www.fao.org/faostat/en/#data/QC/ |title=Austria production in 2018, by FAO |access-date=2020-11-01 |archive-date=2017-05-11 |archive-url=https://web.archive.org/web/20170511194947/http://www.fao.org/faostat/en/#data/QC/ |url-status=live }}</ref>

===Tertiary sector===
{{Main|Tourism in Albania}}

[[File:Gjipe_beach,_Albania.JPG|thumb|[[Karaburun Peninsula, Albania|Gjipe Canyon]] in the Southern of Albania where the [[Adriatic Sea]] meets the [[Ionian Sea]].]]
A significant part of Albania's national income derives from tourism. In 2014, it directly accounted for 6% of GDP, though including indirect contributions pushes the proportion to just over 20%.<ref>{{cite report |first= Rochelle |last=Turner |year=2015 |title=Travel & Tourism: Economic Impact 2015: Albania |page=1 |url= http://www.wttc.org/-/media/files/reports/economic-impact-research/countries-2015/albania2015.pdf |location= London |publisher=World Travel & Tourism Council |url-status=dead |archive-url= https://web.archive.org/web/20161018213446/http://www.wttc.org/-/media/files/reports/economic-impact-research/countries-2015/albania2015.pdf |archive-date=18 October 2016 |access-date=2 February 2023}}</ref> Albania had around 5.1 million visitors in 2017,<ref>{{cite web|last=Albanian Institute of Statistics |title=Tourism in figures 2013-2017|url= http://www.instat.gov.al/media/4181/tourism-in-figures-2013-2017.pdf |archive-url= https://ghostarchive.org/archive/20221009/http://www.instat.gov.al/media/4181/tourism-in-figures-2013-2017.pdf |archive-date=2022-10-09 |url-status=live |website=instat.gov.al}}</ref> mostly from neighbouring countries and the [[European Union]].

In 2011, Albania was recommended as a top travel destination, by [[Lonely Planet]].<ref name="Lonely Planet's top 10">{{cite web |url= http://www.lonelyplanet.com/albania/travel-tips-and-articles/76164 |title=Lonely Planet's top 10 countries for 2011&nbsp;– travel tips and articles |archive-url= https://web.archive.org/web/20101104050258/http://www.lonelyplanet.com/albania/travel-tips-and-articles/76164 |archive-date=4 November 2010 |url-status=dead |access-date=7 August 2013}}</ref> In 2014, Albania was nominated number 4 global touristic destination by ''[[The New York Times]]''.<ref name="NYTplaces">{{cite news|url= https://www.nytimes.com/interactive/2014/01/10/travel/2014-places-to-go.html?_r=0 |title=52 Places to Go in 2014 |work=The New York Times |date=5 September 2014 |url-status=live |archive-url= https://web.archive.org/web/20140702021357/http://www.nytimes.com/interactive/2014/01/10/travel/2014-places-to-go.html?_r=0 |archive-date=2 July 2014}}</ref> The number of tourists has increased by 200% for 2014 as well.

[[File:Lake Koman Albania 2016.jpg|thumb|right|The [[Lake Koman Ferry|Komani Lake]] is a popular ferry ride in southern Europe. It is similar to the Scandinavian fjord with its mountains.]]
The bulk of the tourist industry is concentrated along the [[Adriatic]] and the [[Ionian Sea]] coast. The latter has pristine beaches and is often called the [[Albanian Riviera]]. The Albanian coastline has a considerable length of {{convert|360|km|abbr=off}}, including many lagoons. The coast is known for its rich variety of ecosystems, such as sandy beaches, capes, coves, covered bays, lagoons, small gravel beaches, and sea caves. Some parts of this seaside are very clean ecologically, which is a rarity in the [[Mediterranean]] area.<ref>{{cite web |url= http://albania.al/explore/natural-heritage/coast-line |title=Coastline |publisher=albania.al |access-date=15 August 2014 |url-status=dead |archive-url= https://web.archive.org/web/20140809003858/http://www.albania.al/explore/natural-heritage/coast-line |archive-date=9 August 2014 }}</ref>

The increase in foreign visitors has been dramatic. Albania had only 500,000 visitors in 2005, while in 2012 had an estimated 4.2&nbsp;million – an increase of 740% in seven years. Several of the country's main cities are situated along the seashores of the Adriatic and Ionian Seas. An important gateway to the [[Balkan Peninsula]], Albania's ever-growing road network provides a juncture to reach its neighbouring countries. Albania is in close proximity to all the major European capitals with short two- or three-hour flights that are available daily. Albania is also known for its history and traditional culture.<ref>{{cite web |url= http://albania.al/about-albania |title=About Albania |publisher=albania.al |access-date=15 August 2014 |url-status=dead |archive-url= http://archive.wikiwix.com/cache/20140816230354/http://albania.al/about-albania |archive-date=16 August 2014 }}</ref>

A report from the [[United States Agency for International Development]] (USAid)
in October 2015 indicated that the direct contribution of tourism is becoming a significant part of the country's gross domestic product, a full 4.8% of it in 2013. The total contribution to the GDP was about 17% "including wider effects from investment and the supply chain". This is expected to increase in the future.<ref>{{cite web |url= https://www.usaid.gov/albania/news-information/press-releases/usaid-and-embassy-sweden-announce-call-proposals-albanias |title=USAID and Embassy of Sweden Announce Call for Proposals for Albania's Tourism Sector |date=8 October 2015 |website=[[USAID]] |publisher=USAid |access-date=9 February 2017 |url-status=dead |archive-url= https://web.archive.org/web/20170211155521/https://www.usaid.gov/albania/news-information/press-releases/usaid-and-embassy-sweden-announce-call-proposals-albanias |archive-date=11 February 2017 }}</ref>
Albania in 2023 hit a record high of 10 million tourists, which showed the country's effort to shift its attention to tourism.

==Infrastructure==

===Transport===
{{Main|Transport in Albania}}

[[File:Terminal jashte.jpg|thumb|[[Tirana International Airport Nënë Tereza|Tirana International Airport]] is the 7th busiest airport in the Balkans, handling over 5,2 million passengers per year in 2022.]]

[[Transport in Albania|Transport]] has undergone significant changes in the past two decades, vastly modernising the infrastructure. Improvements to the road infrastructure, rail, urban, and airport transport have all led to a vast improvement in transportation. These upgrades have played a key role in supporting Albania's economy, which in the past decade has come to rely heavily on the construction industry.

Albania's motorway network has been extensively modernised throughout the 2000s and part of it is still under construction. There are a total of 3 major motorways in Albania: the [[A1 motorway (Albania)|A1]], [[A2 motorway (Albania)|A2]], and [[A3 motorway (Albania)|A3]]. When all corridors are completed, Albania will have an estimated 759&nbsp; kilometers of highway linking it with all its neighbouring countries. The [[Tirana International Airport Nënë Tereza]] is the main port of entry for air travellers to the country. The airport is named after the Albanian [[Roman Catholic]] nun and missionary [[Mother Teresa]]. It has seen a dramatic rise in passenger numbers and aircraft movements since the early 1990s. Today, the Airport handles over 5.2 million passengers per year. In April 2021, [[Kukës International Airport Zayed|Kukës Airport]] became operational in the north,<ref name=OPEN>{{cite web |url=https://kuiport.al/d/82/albania-opens-kukes-international-airport |title=Albania opens Kukës International Airport |publisher=Kukës International Airport |date=18 April 2021 |access-date=1 March 2022 |archive-date=1 March 2022 |archive-url=https://web.archive.org/web/20220301084303/https://kuiport.al/d/82/albania-opens-kukes-international-airport |url-status=dead }}</ref> serving first flights only to Istanbul and Zurich. In 2022, new destinations were announced, including [[Vienna International Airport|Vienna]], [[EuroAirport Basel Mulhouse Freiburg|Basel/Mulhouse]], and [[Memmingen Airport|Memmingen]].<ref name="aerotelegraph">{{cite web|url=https://www.aerotelegraph.com/wizz-air-setzt-auf-kukes-fluege-nach-basel-karlsruhe-memmingen-und-wien|title=Wizz Air setzt auf Kukes – Flüge nach Basel, Karlsruhe, Memmingen und Wien|trans-title=Wizz Air relies on Kukes – flights to Basel, Karlsruhe, Memmingen and Vienna|language=German|website=aerotelegraph.com|date=4 February 2022|access-date=1 March 2022|archive-date=17 March 2023|archive-url=https://web.archive.org/web/20230317205624/https://www.aerotelegraph.com/wizz-air-setzt-auf-kukes-fluege-nach-basel-karlsruhe-memmingen-und-wien|url-status=live}}</ref> Furthermore, Albania plans to build two other airports in the south, which will mainly serve the tourism industry.

[[File:Panorama of Durres Port.jpg|thumb|right|upright=1.25|The location of [[Durrës]] makes [[Port of Durrës|its port]] the busiest in Albania and among the largest in the [[Adriatic Sea|Adriatic]] and [[Ionian Sea]]s]]

The busiest and largest [[seaport]] is the [[Port of Durrës]]. As of 2014, the port ranks as one of the largest passenger ports on the [[Adriatic Sea|Adriatic]] and [[Ionian Sea]], with an annual passenger volume of approximately 1.5 million. Other seaports include [[Port of Vlorë|Vlorë]], [[Port of Sarandë|Sarandë]], and [[Port of Shëngjin|Shëngjin]]. The ports serve an extensive system of ferries connecting numerous islands and coastal cities in addition to ferry lines to several cities in Croatia, Greece, and Italy.

The railways in Albania are administered by the national railway company ''[[Hekurudha Shqiptare]]'' (HSH). The railway system was extensively promoted by the [[totalitarianism|totalitarian]] regime of [[Enver Hoxha]], during which time the use of private transport was effectively prohibited. Since the collapse of the former regime, there has been a considerable increase in car ownership and bus usage. Whilst some of the country's roads are still in very poor condition, there have been other developments (such as the construction of a motorway between Tirana and Durrës) that have taken much traffic away from the railways.{{citation needed|date=December 2012}}

===Energy===
{{Main|List of power stations in Albania|Renewable energy in Albania|}}

[[File:StauseeBeiFierze2014-2.JPG|thumb|The [[Fierza Reservoir]] was formed as a result of the construction of the [[Fierza Hydroelectric Power Station]] in 1978]]

Albania is one of only two countries in the world (along with Paraguay) whose entire electricity production is dependent on [[Hydroelectricity in Albania|hydroelectric power]].<ref>{{cite web|title=Electricity production from hydroelectric sources (% of total)|url= http://data.worldbank.org/indicator/EG.ELC.HYRO.ZS?year_high_desc=true |url-status=live|archive-url= https://web.archive.org/web/20170928103117/https://data.worldbank.org/indicator/EG.ELC.HYRO.ZS?year_high_desc=true |archive-date=2017-09-28}}</ref> In 2021 electricity consumed was 6,51 billion kWh with 5.31 billion kWh produced, the rest imported.<ref name="wor11">{{cite web |title=Energy consumption in Albania |url=https://www.worlddata.info/europe/albania/energy-consumption.php |access-date=11 November 2023 |archive-date=11 November 2023 |archive-url=https://web.archive.org/web/20231111094421/https://www.worlddata.info/europe/albania/energy-consumption.php |url-status=live }}</ref>

In December 2023 work began on a new 400kV interconnecter between Albania and North Macedonia to improve the integration of Albania into the regional power system.<ref>{{cite web |date=20 December 2023 |title=EU, Germany, and Albania jointly breaking the ground for the construction of the 400-kV Transmission Line between Albania and North Macedonia |url=https://www.eeas.europa.eu/delegations/albania/eu-germany-and-albania-jointly-breaking-ground-construction-400-kv-transmission-line-between-albania_en |access-date=27 June 2024 |archive-date=1 December 2024 |archive-url=https://web.archive.org/web/20241201175154/https://www.eeas.europa.eu/delegations/albania/eu-germany-and-albania-jointly-breaking-ground-construction-400-kv-transmission-line-between-albania_en |url-status=live }}</ref>

Hydroelectric power stations include the [[Fierza Hydroelectric Power Station|Fierza]], [[Koman Hydroelectric Power Station|Koman]], and [[Vau i Dejës Hydroelectric Power Station|Vau i Dejës]] plants, as well as the planned [[Skavica Hydro Power Plant|Skavica]] dam, on the [[Drin (river)|Drin]] river and [[Banjë Hydro Power Plant|Banjë]] and [[Moglicë Hydro Power Plant|Moglicë]] plants on the [[Devoll (river)|Devoll]] river.<ref>{{cite web|title = Devoll Hydropower Project|url = http://www.power-technology.com/projects/devoll-hydropower-project/ |website=power-technology.com |access-date= 2015-11-03 |url-status = live |archive-url = https://web.archive.org/web/20151117025201/http://www.power-technology.com/projects/devoll-hydropower-project/ |archive-date = 2015-11-17}}</ref> The latter two were planned to increase electricity production in Albania by almost 17%.<ref>{{cite web|title=Devoll hydropower project overview |url= http://www.devollhydropower.al/new/?page_id=7419 |url-status=live|archive-url= https://web.archive.org/web/20161130140221/http://www.devollhydropower.al/new/?page_id=7419 |archive-date=2016-11-30}}</ref>

In December 2023 a 140 MW solar park, covering 200 hectares of land at Karavasta, operated by Voltalia SA, began operations.<ref>{{cite web |date=20 December 2023 |title=Voltalia energises 140-MW solar park in Albania |url=https://renewablesnow.com/news/voltalia-energises-140-mw-solar-park-in-albania-843664/ |access-date=27 June 2024 |archive-date=3 December 2024 |archive-url=https://web.archive.org/web/20241203230947/https://renewablesnow.com/news/voltalia-energises-140-mw-solar-park-in-albania-843664/ |url-status=live }}</ref>

An auction in 2023 awarded 222.48 MW of onshore wind.<ref>{{cite web |date=28 July 2023 |title=Albania announces results of first onshore wind auction |url=https://ceenergynews.com/renewables/albania-announces-results-of-first-onshore-wind-auction/}}</ref>

[[File:Trans Adriatic Pipeline.png|thumb|right|TAP route from [[Kipoi, Evros|Kipoi]], Greece through [[Fier]], Albania to San Foca, Italy]]

The [[Trans Adriatic Pipeline]] became operational in 2020. Its route through Albania is approximately 215 kilometers onshore and 37&nbsp;km offshore in the Albanian section of the [[Adriatic Sea]]. It starts at [[Qendër Bilisht]] in the [[Korça]] region at the Albanian border with Greece, and arrives at the Adriatic coast 17&nbsp;km north-west of [[Fier]], 400 meters inland from the shoreline. A compressor station is near [[Fier]], and an additional compressor is planned near Bilisht should the capacity be expanded to 20 billion cubic meters (bcm). Eight block valve stations and one landfall station were built along its route,<ref name="tap-ag.com">{{cite web |url= https://www.tap-ag.com/the-pipeline/building-the-pipeline/in-albania |title=Pipeline construction in Albania |access-date=2016-10-16 |url-status=live |archive-url= https://web.archive.org/web/20161019011138/https://www.tap-ag.com/the-pipeline/building-the-pipeline/in-albania |archive-date=2016-10-19 }}</ref> as well as approximately 51&nbsp;km of new access roads. There were also 42 bridges refurbished and three new bridges built.<ref name="tap-ag.com" /> The construction of a US$1.2 billion [[AMBO pipeline]] was planned to begin in 2007 to ship crude oil between the port of Burgas in Bulgaria and the port of Vlora in Albania, but this project did not advance. 

[[Albania]] has no [[nuclear power plant]]s. In 2007 the government discussed constructing a nuclear power plant at [[Durrës]]. In addition to meeting the domestic energy demands, the plan foresaw electricity export to neighbouring Balkan countries and Italy via an underwater cable, which would link the Italian and Albanian electricity networks.<ref name="nip102">{{cite web|url=http://world-nuclear.org/info/inf102.html|title=Emerging Nuclear Energy Countries|date=April 2009|work=World Nuclear Association|access-date=2009-04-22|archive-date=2019-10-29|archive-url=https://web.archive.org/web/20191029134444/https://world-nuclear.org/information-library/country-profiles/others/emerging-nuclear-energy-countries.aspx|url-status=dead}}</ref><ref name="albania">{{cite news|url=http://www.world-nuclear-news.org/newsarticle.aspx?id=14374|title=Albania looks to nuclear to power region|date=2007-11-12|work=World Nuclear News|access-date=2009-04-22|archive-date=2015-10-03|archive-url=https://web.archive.org/web/20151003130231/http://www.world-nuclear-news.org/newsarticle.aspx?id=14374|url-status=live}}</ref> In April 2009, Albania and Croatia announced a plan to jointly construct a 1,500&nbsp;MWe nuclear power plant on the shores of [[Lake Skadar]] (Lake Shkodër), near Albania's border with [[Montenegro]].<ref name="albania2">{{cite news|url=http://www.world-nuclear-news.org/newsarticle.aspx?id=25056|title=Albania and Croatia plan joint plant|date=2009-04-17|work=World Nuclear News|access-date=2009-04-22|archive-date=2015-10-03|archive-url=https://web.archive.org/web/20151003134640/http://www.world-nuclear-news.org/newsarticle.aspx?id=25056|url-status=live}}</ref> As of 2016, Albania has no plans to build any nuclear power plants in the foreseeable future.<ref name="ab">{{cite web|url= https://www.iaea.org/sites/default/files/albania_nr-7th-rm.pdf |archive-url= https://ghostarchive.org/archive/20221009/https://www.iaea.org/sites/default/files/albania_nr-7th-rm.pdf |archive-date=2022-10-09 |url-status=live|title=Albania, First regular national report under the convention on nuclear safety, 2016|date=2016-08-01|access-date=2019-09-16}}</ref>

===Oil===
{{Main|List of oil and gas fields in Albania}}

Albania has the second largest [[oil deposits]] in the [[Balkan Peninsula|Balkan peninsula]] and the largest onshore [[List of countries by proven oil reserves|oil reserves in Europe]]. Its crude output amounted to more than 1.2 million tonnes in 2013, including 1.06 million by Canada's Bankers Petroleum, 87,063 tonnes from Canada's Stream Oil, and 37,406 tonnes by [[Albpetrol]] on its own. Three foreign firms produced the rest.<ref>{{cite news|url= http://in.reuters.com/article/albania-crude-idINL6N0NS55T20140506 |title=Interview - Albania to auction 13 blocks for oil exploration |work=Reuters|date=6 May 2014|access-date=3 March 2015 |url-status=dead|archive-url= https://web.archive.org/web/20150402090243/http://in.reuters.com/article/2014/05/06/albania-crude-idINL6N0NS55T20140506 |archive-date=2 April 2015}}</ref> Oil exploitation in Albania began in 1928, in Kuçova Oil field and was continuously increasing and one year later in [[Patos, Albania|Patos]], in sandstone reservoirs. Oil production in Albania was increasing continuously. During the periods 1929–1944 and 1945–1963 the total production was only from the sandstone reservoirs, while after 1963, it was from the carbonate reservoirs. Up to 1963, the sandstones produced 400,974,649 tons of oil.<ref>{{cite web |url= http://www.iene.gr/2ndSEEED/articlefiles/Session_III/Mezini_A.pdf |title=Oil & Gas Exploitation in Albania |access-date=2016-10-16 |url-status=live |archive-url= https://web.archive.org/web/20161018204837/http://www.iene.gr/2ndSEEED/articlefiles/Session_III/Mezini_A.pdf |archive-date=2016-10-18 }}</ref>

Albanian oil and gas represents the most promising albeit strictly regulated sectors of the economy. It has attracted foreign investors since the early 1990s marking the beginning of reforms that transformed the public exclusive rights, control, and responsibilities with regard to exploration and exploitation, to the private sector. Oil and gas reserves still remain the property of the Albanian State which enters into agreements and grants rights with regard to evaluation, exploration, production, refining/processing, and transport of the product.<ref>{{cite web |url= http://www.cclaw.al/wp-content/uploads/advice/Oil-and-gas-in-Albania.pdf |title=Oil and Gas in Albania |access-date=2016-10-16 |url-status=live |archive-url= https://web.archive.org/web/20161019041047/http://www.cclaw.al/wp-content/uploads/advice/Oil-and-gas-in-Albania.pdf |archive-date=2016-10-19 }}</ref> In March 2016, affiliates of China's Geo-Jade Petroleum purchased the drilling rights (from a Canadian company) for exploiting the oil fields of Patos-Marinze and Kucova. They paid €384.6 million, presumably indicating an interest in accelerating the process.<ref name="Mejdini"/>

==Statistics==
[[File:Natural resources of Albania.png|thumb|Natural resources of Albania. Metals are in blue (Cr, Fe, Ni, Cu), fossil fuels are in red (L — lignite, P — petroleum, BI — bitumen).]]

===Macroeconomic indicators===
'''GDP (PPP):''' $40.822 billion<ref name=imf2>{{cite web |url= http://www.imf.org/external/pubs/ft/weo/2014/02/weodata/weorept.aspx?pr.x=96&pr.y=19&sy=2014&ey=2019&scsm=1&ssd=1&sort=country&ds=.&br=1&c=914&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC&grp=0&a= |title=Report for Selected Countries and Subjects |publisher=Imf.org |date=2006-09-14 |access-date=2014-10-07 |url-status=live |archive-url= https://web.archive.org/web/20150320115657/http://www.imf.org/external/pubs/ft/weo/2014/02/weodata/weorept.aspx?pr.x=96&pr.y=19&sy=2014&ey=2019&scsm=1&ssd=1&sort=country&ds=.&br=1&c=914&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC&grp=0&a= |archive-date=2015-03-20 }}</ref> (2021)

'''GDP per capita (PPP):''' $19,368<ref>{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2021/April/weo-report?c=914,&s=NGDP,NGDPD,NGDPPC,NGDPDPC,PPPPC,TM_RPCH,TMG_RPCH,TX_RPCH,TXG_RPCH,LUR,LP,GGX,GGX_NGDP,NGDP_FY,BCA,BCA_NGDPD,&sy=2019&ey=2026&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=Download World Economic Outlook database: April 2021 World Economic Outlook Database |website=imf.org |access-date=2 February 2023 |archive-date=4 April 2023 |archive-url=https://web.archive.org/web/20230404193756/https://www.imf.org/en/Publications/WEO/weo-database/2021/April/weo-report?c=914,&s=NGDP,NGDPD,NGDPPC,NGDPDPC,PPPPC,TM_RPCH,TMG_RPCH,TX_RPCH,TXG_RPCH,LUR,LP,GGX,GGX_NGDP,NGDP_FY,BCA,BCA_NGDPD,&sy=2019&ey=2026&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |url-status=live }}</ref> (2019)

''country comparison to the world:'' 95

'''GDP – real growth rate:''' 8.52% (2021)

''country comparison to the world:'' 34

'''[[List of countries by inflation rate|Inflation]]:''' 2.04% (2021)

''country comparison to the world: 155''

'''[[Unemployment]]:''' 11.82 (2021)

''country comparison to the world: 57''

===Agriculture===
'''Products''': milk, maize, tomatoes, potatoes, watermelons, wheat, grapes, cucumbers, onions, apples

===Foreign trade===
'''Top export destinations by dollar (2014):''' [[Italy]] ($10.15 billion), [[Spain]] ($1680 million), [[China]] ($1300 million), [[Turkey]] ($920.8 million) and [[India]] ($880.5 million).

'''Top import items 2014:''' Refined Petroleum ($547 million), Cars ($198 million), Packaged Medicaments ($129 million), Tanned Equine and Bovine Hides ($97.4 million) and Footwear Parts ($86.2 million).

'''Top import origins by dollar (2014):''' [[Italy]] ($100.38 billion), [[Greece]] ($41300 million), [[Turkey]] ($31500 million), [[China]] ($27800 million) and [[Germany]] ($23500 million).

'''Import partners:''' Italy 28%, Greece 12%, China 11%, Turkey 9%, Germany 5% (2019)

'''Remittances:''' $600 million (2014 est.)

'''Electricity – production by source:'''
*''hydro:''   99.4% (2021)

'''Natural gas'''

* ''production'': 42.05 million m<sup>3</sup> (2019 est.)

*''consumption'': 42.05 million m<sup>3</sup> (2019 est.)

*''exports'': 0 cu m (2007 est.)
*''imports'': 0 cu m (2007 est.)
*''proven reserves'': 5.692 billion m<sup>3</sup> (2012 est)
:

===Exchange rates===
*Lekë per US dollar: 103.51 (2020), 125.4 (2017), 79.546 (2008), 92.668 (2007), 98.384 (2006), 102.649 (2005), 102.78 (2004), 121.863 (2003), 140.155 (2002), 143.485 (2001), 143.709 (2000), 137.691 (1999)

==See also==
*[[Agriculture in Albania]]
*[[Bank of Albania]]
*[[Economy of Europe]]
*[[List of Albanian companies]]
*[[List of banks in Albania]]
*[[Albanian mafia|Organized crime in Albania]]

==Notes==
{{Reflist|group=note}}

==References==
{{Reflist}}
*{{CIA World Factbook|year=2006}}
*From 2003, {{StateDept}}
*From 2007, [[International Monetary Fund]]

==Further reading==
*{{cite journal|last1=Bitzenis |first1=Aristidis |first2=Leslie T. |last2=Szamosi |title=Entry Modes and the Determinants of Foreign Direct Investment in a European Union Accession Country: The Case of Albania |journal=Journal of East-West Business |volume=15 |issue=3–4 |date=2009 |pages=189–209|doi=10.1080/10669860903435947 |s2cid=154462443 }}
*{{cite journal|last=Feilcke-Tiemann |first=Adelheid |title=Albania: Gradual Consolidation limited by Internal Political Struggles |journal=Southeast European and Black Sea Studies |volume=6 |issue=1 |date=2006 |pages=25–41|doi=10.1080/14683850500505212 |s2cid=155795135 }}

==External links==
{{Commons category|Economy of Albania}}
*[http://www.bankofalbania.org Bank of Albania (official site)]
*[https://archive.today/20150410171840/https://www.quandl.com/c/albania/albania-economy-data Albania Economy Data] from Quandl
*[https://web.archive.org/web/20120828023259/http://www.minfin.gov.al/ Ministry of Finance of Albania Official Website]
*[http://www.balkanalysis.com/albania/2012/02/05/albania-oil-industry-enjoys-revival-but-investor-government-relations-remain-a-question/ Comprehensive Balkanalysis.com 2012 report on Albania oil sector foreign investment] {{Webarchive|url=https://web.archive.org/web/20190110234847/http://www.balkanalysis.com/albania/2012/02/05/albania-oil-industry-enjoys-revival-but-investor-government-relations-remain-a-question/ |date=2019-01-10 }}
*[https://web.archive.org/web/20181016134809/http://ekonomia.gov.al/ Ministry of Economy, Trade, Energy, and Tourism of Albania Official Website]
*[https://bizpages.org/countries--AL--Albania Albania economic data]
*[http://wits.worldbank.org/CountryProfile/Country/ALB/Year/2012/Summary World Bank Trade Summary Statistics Albania 2012]

{{Albania topics}}
{{Central European Free Trade Agreement}}
{{Economy of Europe}}
{{Authority control}}

[[Category:Economy of Albania| ]]
[[Category:World Trade Organization member economies|Albania]]
[[Category:Economies of Europe by country|Albania]]