Exports start 2024 with a deep drop of 29%

2024-02-20 07:30:00, Aktualitet CNA

Exports have also started 2024 following the downward trend that was present throughout most of 2023.

INSTAT data revealed that exports of goods reached the value of 29 billion ALL, decreasing by 29.2% compared to the same period a year ago and by 20.7% compared to December 2023. This is the biggest monthly decline since the pandemic.

"Minerals, fuels and electricity", "Textiles and shoes", and "Construction materials and metals" were the groups that influenced the strong contraction of exports.

During the month of January 2024, the decrease in exports of 29.2% was mainly influenced by the following groups: "Minerals, fuel and electricity" with -19.5 percentage points, "Textiles and shoes" with -5.0 percentage points, and "Construction materials and metals" with -3.8 percentage points, etc. While positively influenced the groups: "Chemical and plastic products" with +0.3 percentage points and "Food, drinks, tobacco" with +0.1 percentage points.

After a positive trend in 2022, the year 2023 was very negative for domestic exports due to the unfavorable international conjuncture, the drop in prices on the stock exchanges and especially the exchange rate, as the devaluation of the euro reduced the income of exporters when converted to lek.

The textile and footwear industry has been the hardest hit, with companies already starting to lay off workers, due to a drop in orders from foreign partners. The latter are moving production to places with cheaper labor costs.

The trade deficit deepens

Unlike exports, imports of goods have increased, worsening the trade deficit. According to INSTAT, Imports of goods reached the value of 60 billion ALL, increasing by 3.4%, compared to a year ago and decreasing by -17.3%, compared to December 2023. This month's trade deficit is 30 billion ALL, increasing by 88.6% compared to January 2024 and decreasing by -13.5% compared to December 2023.

Exports to Italy, Kosovo and Germany fall

In the month of January 2024, the countries with which Albania had the biggest decrease in exports, compared to January 2023, are: Italy (7.6%), Kosovo (20.1%) and Germany (34.7%). While the countries with which exports have had the greatest growth are: Croatia (59.3%) and Austria (17.6%).

In January 2024, the countries with which Albania had the largest increase in imports are: Italy (2.7%), China (2.1%) and Greece (36.3%). While the countries with which imports have had the biggest reduction, compared to January 2023, are: Turkey (5.6%), Spain (16.4%), and North Macedonia (5.1%).

Trade exchanges with EU countries account for 58.4% of all merchandise trade. In January 2024, exports to EU countries account for 77.8% of total exports and imports from EU countries account for 48.9% of total imports. Albania's main trading partners are: Italy (29.7%), Greece (7.7%), Turkey (7.6%) and Germany (7.0%)./ Monitor.al