Albania’s current account deficit widens 5% y/y in 2013.

By bne IntelliNews April 1, 2014

Albania’s current account deficit widened by 5% y/y to EUR 1.03bn in 2013, the central bank said. According to IntelliNews calculations, the gap accounted for 10.7% of the projected full-year GDP, up from 10.4% a year earlier.

In absolute terms, the deterioration was largely due to shrinking surplus on the service account, coupled with lower current transfers surplus. In particular, the net services account produced a EUR 7mn surplus in 2013, down from EUR 214mn a year earlier. This was mainly due to a deterioration on the tourism account, which reversed to a EUR 6mn deficit in 2013 from a surplus of EUR 142mn in 2012. Tourism inflows declined by 3.3% y/y to EUR 1.1bn, while at the same time outflows increased by 11% to EUR 1.1bn.

Current transfers witnessed a 20.1% annual decline in the surplus. Within this, net remittances dropped even faster, by 50% y/y to EUR 339mn.

The deficit on the trade account narrowed by 13.6% to EUR 1.73bn, as exports increased by 13.6% y/y to EUR 1.73bn and imports declined by 1.8% y/y to EUR 3.46bn.

The deficit of the income account also dropped to EUR 9mn in 2013 from EUR 72mn a year earlier.

Currnet Account, EUR mn    
  2012 2013 % y/y
Current Account  -980 -1029 5.0
Goods -2000 -1728 -13.6
        Export 1525 1732 13.6
        Import -3525 -3460 -1.8
Services 214 7 -96.7
        Export 1673 1654 -1.1
        Import -1459 -1647 12.9
        Tourism 142 -6 -104.2
Income -72 -9 -87.5
Current transfers 879 702 -20.1
        Remittances  676 339 -49.9
Capital transfers 66 48 -27.3
Source: Central bank      

Related Articles

Albania's only urban waste recycling plant burns down

A huge fire broke out at the Everest urban waste recycling plant in Albanian village of Kashar near Tirana, which totally burnt down the factory during the weekend, media reported on April 23. ... more

Albanian oil firm Gulf reportedly under investigation for money laundering

Officials from oil distribution company Gulf Albania are under investigation for money laundering, media in Tirana reported on April 22. The owner of the group is Alexandre Gogokhia, a ... more

Albania wants to attract more US defence sector investments

Albanian Defense Minister Olta Xhacka said that Tirana wants more investments by the US military industry in Albania, after a US company launched work on the installation of the Integrated ... more