Albania’s current account deficit narrowed by 25.9% y/y to EUR 215mn in Q1 2013, the central bank said. According to IntelliNews calculations, the gap accounted for 2.1% of the projected full-year GDP, down from 3% a year earlier. In absolute terms, the improvement was largely due to shrinking foreign trade deficit, which more than offset the deterioration on the service account and current transfers.
The deficit on the trade account decreased by 30.8% to EUR 322mn, as exports increased by 16.9% y/y to EUR 381mn and imports declined by 11.1% y/y to EUR 703mn. The net services account produced a EUR 40mn deficit in Q1 2013, which negatively compared to a EUR 9mn surplus a year earlier. This was mainly due to a deterioration on the tourism account, which also reversed to a EUR 35mn deficit in Q1 2013 from a surplus of EUR 4mn in the same period on 2012. In particular, tourism inflows declined by 7.6% y/y to EUR 171mn, while at the same time outflows increased by 13.8%.
The income account registered a deficit of EUR 12mn, lower than the EUR 40mn gap a year ago. Current transfers registered a 22.7% annual decline. Within thi,s net remittances witnessed a 30.1% y/y drop.
|Currnet Account, Q1, EUR mn|
|Source: Central bank|
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