The trade balance measures the difference between the value of exports and imports in an economy. Exports represent the monetary value of all goods/services sold/committed abroad, while imports represent the monetary value of all goods/services purchased/carried out from the other countries.
Balance of Trade = Exports – Imports
When the imports are larger than exports this means that a trade deficit exists, while if exports are larger than imports this results in a trade surplus. During the last 20 years, Albania has been in a constant trade deficit.
During the last two years, 2010-2012, exports have been increasing, even though the rate of growth has been slowing down.
On the other hand, imports increased in 2010-2011, but they decreased absolutely and relatively during 2012.
In total, the effect on the trade balance has been an increase in deficit by 10% in 2011, and a decrease by 9% in 2012, so that by absolute values the trade deficit in 2012 is comparable with 2010.
The main trading partners during this two years remain Italy and Greece. The most important products traded by value are textile/footware and minerals/fuels/electricity.
Source: INSTAT, Bank of Albania
Analysis and comments: ODA
Source: INSTAT, Bank of Albania
Analysis and comments: ODA
Source: INSTAT, Bank of Albania
Analysis and comments: ODA
Source: INSTAT, Bank of Albania
Analysis and comments: ODA
The presence of a trade deficit means borrowing from abroad or selling off capital assets (long-term strategic assets) to finance current purchases of goods and services. In the long run this is not a viable way to run the economy.
Source: INSTAT, Bank of Albania
Analysis and comments: ODA