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Economic overview
Albania — 36 years of data
Historical Values
| Year | Value |
|---|---|
| 1990 | As the poorest country in Europe, Albania's development lags behind even the least favored areas of the Yugoslav economy. The Stalinist-type economy operates on the principles of central planning and state ownership of the means of production. In recent years Albania has implemented limited economic reforms to stimulate its lagging economy, although they do not go nearly so far as current reforms in the USSR and Eastern Europe. Attempts at self-reliance and a policy of not borrowing from interna |
| 1991 | As the poorest country in Europe, Albania's development lags behind even the least favored areas of the Yugoslav economy. For over 40 years, the Stalinist-type economy has operated on the principles of central planning and state ownership of the means of production. In recent years Albania has implemented limited economic reforms to stimulate its lagging economy, provide incentives, and decentralize decisionmaking. In an effort to expand international ties, Tirane has reestablished diplomatic re |
| 1992 | The Albanian economy, already providing the lowest standard of living in Europe, contracted sharply in 1991, with most industries producing at only a fraction of past levels and an unemployment rate estimated at 40%. For over 40 years, the Stalinist-type economy has operated on the principle of central planning and state ownership of the means of production. Albania began fitful economic reforms during 1991, including the liberalization of prices and trade, the privatization of shops and transpo |
| 1993 | The Albanian economy, already providing the lowest standard of living in Europe, contracted sharply in 1991, with most industries producing at only a fraction of past levels and an unemployment rate estimated at 40%. For over 40 years, the Stalinist-type economy operated on the principle of central planning and state ownership of the means of production. Fitful economic reforms begun during 1991, including the liberalization of prices and trade, the privatization of shops and transport, and land |
| 1994 | An extremely poor country by European standards, Albania is making the difficult transition to a more open-market economy. The economy rebounded in 1993 after a severe depression accompanying the collapse of the previous centrally planned system in 1990 and 1991. Stabilization policies, including public sector layoffs and reduced social services, have improved the government's fiscal situation and reduced inflation. The recovery was spurred by the remittances of some 5% of the population which w |
| 1995 | An extremely poor country by European standards, Albania is making the difficult transition to a more open-market economy. The economy rebounded in 1993-94 after a severe depression accompanying the collapse of the previous centrally planned system in 1990 and 1991. Stabilization policies - including a strict monetary policy, public sector layoffs, and reduced social services - have improved the government's fiscal situation and reduced inflation. The recovery was spurred by the remittances of s |
| 1996 | An extremely poor country by European standards, Albania is making the difficult transition to a more open-market economy. The economy rebounded in 1993-95 after a severe depression accompanying the collapse of the previous centrally planned system in 1990 and 1991. Stabilization policies - including a strict monetary policy, public sector layoffs, and reduced social services - have improved the government's fiscal situation and reduced inflation. The recovery has been spurred by the remittances |
| 1997 | An extremely poor country by European standards, Albania is making the difficult transition to a more open-market economy. 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 |
| 1998 | An extremely poor country by European standards, Albania is making the difficult transition to a more open-market economy. 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 |
| 1999 | An extremely poor country by European standards, Albania is making the difficult transition to a more open-market economy. 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 |
| 2000 | An extremely poor country by European standards, Albania is making the difficult transition to a more open-market economy. 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 |
| 2001 | Poor by European standards, Albania is making the difficult transition to a more open-market economy. The economy rebounded in 1993-95 after a severe depression accompanying the end 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% of GDP. The collapse of financial pyramid schemes in |
| 2002 | Poor and backward by European standards, Albania is making the difficult transition to a more modern open-market economy. The government has taken measures to curb violent crime and to revive economic activity and trade. The economy is bolstered by remittances from abroad of $400-$600 million annually, mostly from Greece and Italy. Agriculture, which accounts for half of GDP, is held back because of frequent drought and the need to modernize equipment and consolidate small plots of land. Severe |
| 2003 | Poor and backward by European standards, Albania is making the difficult transition to a more modern open-market economy. The government has taken measures to curb violent crime and to spur economic activity and trade. The economy is bolstered by remittances from abroad of $400-$600 million annually, mostly from Greece and Italy; this helps offset the sizable trade deficit. Agriculture, which accounts for half of GDP, is held back because of frequent drought and the need to modernize equipment a |
| 2004 | Poor and backward by European standards, Albania is making the difficult transition to a more modern open-market economy. The government has taken measures to curb violent crime and to spur economic activity and trade. The economy is bolstered by remittances from abroad of $400-$600 million annually, mostly from Greece and Italy; this helps offset the sizable trade deficit. Agriculture, which accounts for one-half of GDP, is held back because of frequent drought and the need to modernize equipme |
| 2005 | Poor and backward by European standards, Albania is making the difficult transition to a more modern open-market economy. The government has taken measures to curb violent crime and to spur economic activity and trade. The economy is bolstered by annual remittances from abroad of $600-$800 million, mostly from Greece and Italy; this helps offset the towering trade deficit. Agriculture, which accounts for about one-half of GDP, is held back because of frequent drought and the need to modernize eq |
| 2006 | 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 to spur economic activity and trade. The economy is bolstered by annual remittances from abroad of $600-$800 million, mostly from Greece and Italy; this helps offset the towering trade deficit. Agriculture, which accounts for about one-quarter of GDP, is held back because of frequent drought and the need to modernize equ |
| 2007 | 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 reduce the large gray economy. 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 about one-quarter of GDP, is held back because of lack of modern equipment, uncl |
| 2008 | 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 accoun |
| 2009 | Lagging behind its Balkan neighbors, Albania is making the difficult transition to a more modern open-market economy. Macroeconomic growth has averaged around 5% 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 annual remittances from abroad representing about 15% of GDP, mostly from |
| 2010 | Albania, a formerly closed, centrally-planned state, is making the difficult transition to a more modern open-market economy. Macroeconomic growth averaged around 6% between 2004-08, but declined to about 3% in 2009-10. 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 annual remittances from abroad representing a |
| 2011 | Albania, a formerly closed, centrally-planned state, is making the difficult transition to a more modern open-market economy. Macroeconomic growth averaged around 6% between 2004-08, but declined to about 3% in 2009-10. 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. Remittances, a significant catalyst for economic growth have declined fro |
| 2012 | Albania, a formerly closed, centrally-planned state, is making the difficult transition to a more modern open-market economy. Macroeconomic growth averaged around 6% between 2004-08, but declined to about 3% in 2009-11, and 0.5% in 2012. 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. Remittances, a significant catalyst for economic growth |
| 2013 | Albania, a formerly closed, centrally-planned state, is making the difficult transition to a more modern open-market economy. Macroeconomic growth averaged around 6% between 2004-08, but declined to about 3% in 2009-11, and 0.5% in 2012. 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. Remittances, a significant catalyst for economic growth |
| 2014 | Albania, a formerly closed, centrally-planned state, is making the difficult transition to a more modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, more recently, its negative effects have put some pressure on the Albanian economy. While the government is focused on establishing a favorable business climate through the simplification of licensing requirements and tax codes, it entered into a new arrangement with the IMF for additional fina |
| 2015 | Albania, a formerly closed, centrally-planned state, is a developing country with a modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, more recently, its negative effects have put some pressure on the Albanian economy, resulting in a significant economic slowdown. While the government is focused on establishing a favorable business climate through the simplification of licensing requirements and tax codes, it entered into a new arrangement |
| 2016 | Albania, a formerly closed, centrally-planned state, is a developing country with a modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, more recently, the negative effects of the crisis have caused a significant economic slowdown. Close trade, remittance, and banking sector ties with Greece and Italy make Albania vulnerable to spillover effects of debt crises and weak growth in the euro zone. | Remittances, a significant catalyst for economi |
| 2017 | Albania, a formerly closed, centrally-planned state, is a developing country with a modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, the negative effects of the crisis caused a significant economic slowdown. Since 2014, Albania’s economy has steadily improved and economic growth is projected to increase to 3.8% in 2017. However, close trade, remittance, and banking sector ties with Greece and Italy make Albania vulnerable to spillover eff |
| 2018 | Albania, a formerly closed, centrally-planned state, is a developing country with a modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, the negative effects of the crisis caused a significant economic slowdown. Since 2014, Albania’s economy has steadily improved and economic growth reached 3.8% in 2017. However, close trade, remittance, and banking sector ties with Greece and Italy make Albania vulnerable to spillover effects of possible deb |
| 2019 | Albania, a formerly closed, centrally planned state, is a developing country with a modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, the negative effects of the crisis caused a significant economic slowdown. Since 2014, Albania’s economy has steadily improved and economic growth reached 3.8% in 2017. However, close trade, remittance, and banking sector ties with Greece and Italy make Albania vulnerable to spillover effects of possible deb |
| 2020 | Albania, a formerly closed, centrally planned state, is a developing country with a modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, the negative effects of the crisis caused a significant economic slowdown. Since 2014, Albania’s economy has steadily improved and economic growth reached 3.8% in 2017. However, close trade, remittance, and banking sector ties with Greece and Italy make Albania vulnerable to spillover effects of possible deb |
| 2021 | Albania, a formerly closed, centrally planned state, is a developing country with a modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, the negative effects of the crisis caused a significant economic slowdown. Since 2014, Albania s economy has steadily improved and economic growth reached 3.8% in 2017. However, close trade, remittance, and banking sector ties with Greece and Italy make Albania vulnerable to spillover effects of possible deb |
| 2022 | Albania, a formerly closed, centrally planned state, is a developing country with a modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, the negative effects of the crisis caused a significant economic slowdown. Since 2014, Albania s economy has steadily improved and economic growth reached 3.8% in 2017. However, close trade, remittance, and banking sector ties with Greece and Italy make Albania vulnerable to spillover effects of possible deb |
| 2023 | future hopeful EU member state; oil and gas exporter but investing toward a blue economy ; COVID-19 and earthquake economic disruptions and declines; experiencing high debt and account balances; strengthening private sector growth and public sector trust |
| 2024 | upper-middle -income Balkan economy; EU accession candidate; growth bolstered by tourism, services, construction, and private consumption; fiscal consolidation through revenue collection to address public debt; challenges include weak governance, corruption, climate adaptation, vulnerability to energy sector shocks, and emigration of workers |
| 2025 | upper-middle-income Balkan economy; EU accession candidate; growth bolstered by tourism, agriculture, mining, construction, and private consumption; fiscal consolidation through revenue collection and tax compliance enhancements to address public debt; challenges include weak governance, corruption, and high emigration rates |