This is reminiscent of the strong relationship between Albania and China in the 1970s. A 2018 analysis of six key categories indicated that Albania continues to experience infrastructure problems that present challenges to businesses and further economic opportunities. ==Sectors== ===Primary sector=== During the communist regime, Albania's agriculture was heavily centralised integrated with agriculture-related industries, and state-run.
Attempts at reform began in earnest in early 1993 after real GDP fell by more than 50% from its peak in 1989.
After reaching a low point in the early 1990s, the economy slowly expanded again, reaching its 1989 level by the end of the decade. ==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. For purchasing power parity comparisons, the US dollar is exchanged at 49 leks (2007 estimate).
Albania is ranked among the top 25 most popular tourist destinations in Europe, and was voted one of the world's top tourism destination in 2014 by The New York Times and Lonely Planet. ==History== Following the collapse of the communist regime in 1990, Albania experienced a mass exodus of refugees to Italy and Greece.
After reaching a low point in the early 1990s, the economy slowly expanded again, reaching its 1989 level by the end of the decade. ==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. For purchasing power parity comparisons, the US dollar is exchanged at 49 leks (2007 estimate).
Annual inflation dropped from 25% in 1991 to zero.
The country currently suffers from high organised crime and high 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.
Most agricultural land was privatised in 1992, substantially improving peasant incomes.
Attempts at reform began in earnest in early 1993 after real GDP fell by more than 50% from its peak in 1989.
Led by the agricultural sector, real 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.
Led by the agricultural sector, real 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.
This trend continued with the privatisation of transport, services, and small and medium-sized enterprises. In 1995, the government began privatising large state enterprises.
Led by the agricultural sector, real 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.
Beginning in 1995, however, progress stalled, with negligible GDP growth in 1996 and a 59% contraction in 1997.
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 renewal of inflationary pressures, spurred by the budget deficit which exceeded 0.12%.
Inflation approached 0.20% in 1996 and 0.50% in 1997.
Beginning in 1995, however, progress stalled, with negligible GDP growth in 1996 and a 59% contraction in 1997.
Inflation approached 0.20% in 1996 and 0.50% in 1997.
The collapse of financial pyramid schemes 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 macroeconomic restructuring regime with the International Monetary Fund and the World Bank.
In 1998, Albania recovered the 0.8% drop in GDP of 1997 and pushed ahead by 79% in 1999.
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.
In 1998, Albania recovered the 0.8% drop in GDP of 1997 and pushed ahead by 79% in 1999.
In 1998, Albania recovered the 0.8% drop in GDP of 1997 and pushed ahead by 79% in 1999.
In 2000, the oldest commercial bank, 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 Bank of Austria for US$124 million.
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.
According to Eurostat, Albania's GDP per capita (expressed in PPS – Purchasing Power Standards) stood at 35 percent of the EU average in 2008.
Mean wages were $300.83 per month in 2009. Albania is a low income country by Western European standards, with GDP per capita lower than all countries in the EU.
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%.
Structural reforms to enhance the business environment, address infrastructure gaps, and improve labour skills will be crucial to strengthen competitiveness." ===Application of Albania to the European Union=== Albania applied for membership of the European Union in 2009.
Albania is ranked among the top 25 most popular tourist destinations in Europe, and was voted one of the world's top tourism destination in 2014 by The New York Times and Lonely Planet. ==History== Following the collapse of the communist regime in 1990, Albania experienced a mass exodus of refugees to Italy and Greece.
The country had received request status in 2014, but Albania has twice rejected full membership.
Discussions took place during 2015 to secure funding to do so. By 2016, China became one of the major investors in Albania having purchased drilling rights to the oil fields of Patos-Marinze and Kucova (from a Canadian company) and Tirana International Airport SHPK.
Discussions took place during 2015 to secure funding to do so. By 2016, China became one of the major investors in Albania having purchased drilling rights to the oil fields of Patos-Marinze and Kucova (from a Canadian company) and Tirana International Airport SHPK.
As of March 2016, China was the country's main trading partner, with 7.7 percent of the country's total international trade; that is far more than the trade with Greece and Turkey.
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." 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 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 unemployment rate in 2018 was 12.4%. Results of Albania's efforts were initially encouraging.
This is reminiscent of the strong relationship between Albania and China in the 1970s. A 2018 analysis of six key categories indicated that Albania continues to experience infrastructure problems that present challenges to businesses and further economic opportunities. ==Sectors== ===Primary sector=== During the communist regime, Albania's agriculture was heavily centralised integrated with agriculture-related industries, and state-run.
In May 2019, European Commissioner Johannes Hahn recommended that the EU open membership talks with Albania. Albania also needs to continue to improve its infrastructure, particularly highways within its borders and connecting the country to its neighbours.
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