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Exports return to decline in May, fall by 12.4%, effect from textiles-shoes and agricultural products

2024-06-18 14:12:00, Ekonomi CNA

Exports return to decline in May, fall by 12.4%, effect from textiles-shoes and

Illustrative photo, taken from Monitor

The positive performance of exports lasted only one month, while in May, they returned to the decline, influenced by the contraction of sales abroad of textiles and shoes and food products, beverages and tobacco.

According to INSTAT data, in May 2024, exports of goods reached the value of ALL 35 billion, decreasing by -12.4%, compared to the same period a year ago. In April 2024, exports of goods had increased for the first time in many months by 1.8%, compared to the same period a year ago. In March, exports had shrunk by 21%, in February by -16.1% and in January by 29.2%.

During the month of May 2024, in the decrease of exports of -12.4%, the groups: "Textiles and shoes" with -7.6 percentage points, "Food, drinks, tobacco" with -2.7 percentage points, " Chemical and plastic products" with -0.7 percentage points, etc. The group: "Minerals, fuels, electricity" had a positive impact with +0.4 percentage points.

For the five-month period, exports have recorded a strong contraction. According to INSTAT, in this five-month period, exports of goods reached the value of ALL 165 billion, decreasing by -16.1%.

The groups that have influenced the annual decrease in exports are: "Minerals, fuel and electricity" with -6.1 percentage points, "Textiles and shoes" with -5.6 percentage points, "Construction materials and metals" with - 2.4 percentage points, etc.

Textiles and footwear deepen the decline in May

In May, exports of textiles and footwear, the largest export group in the country (at 28.1% of the total), fell by 24.3%, from 10.1%, which was the contraction for April, worsening the pace again. For the 5th month, textile-shoe exports were 46 billion ALL, with a contraction of 19% on an annual basis.

For months, the industry has been going through a difficult period influenced by many factors, such as the increase in costs that has caused partners to move to the Middle East, reducing orders, and especially the devaluation of the euro, which reduces their income when converted to lek. The performance is more negative than during the pandemic period, when the global economy was temporarily blocked.

For the period January-May 2023, one euro was exchanged at an average of 114 ALL, according to the exchange rate of the Bank of Albania, while for the same period of this year it is exchanged at 102.7 ALL, or almost 10% less.

This situation is forcing many factories to close, according to announcements from the Association of Exporters.

Minerals, fuels continue to grow, albeit at a slower pace

"Minerals, fuels, energy" was the second largest group in the country, with 19.7% of the total. After a sharp decline in the first 3 months of the year, the group recovered sharply in April on higher sales from Bankers Petroleum, the country's largest exporter, and weather-related electricity trading. In April, the exports of this group increased by 26%. The positive trend continued in May, but at a slower pace, with an expansion of 2.4%. But, for the 5th month, this group recorded exports worth almost 32 billion ALL, with a 27% contraction, as a result of the negative performance in the first three months.

Building materials and metals continue to contract slightly

"Construction materials and metals" were the third largest group in the country for the five months, with 18.7% of the total. This group is affected by the performance of Kurum, the steel processor, which is one of the largest exporters in the country. In May, this group fell by 3%, slowing down the rate of contraction for the second month in a row, while for the 5th month the contraction is 13.4%. The sector is suffering from weak regional demand and shrinking prices.

Foods, drinks and tobacco with strong decline

"Food, drink and tobacco", one of the groups with the best performance in recent years, recorded a negative performance in May, after returning to growth in April. In May, exports of this group fell by 16.7%, the sharpest contraction in many months, after increasing by 9.5% in April. The negative performance of May caused that even for the 5th month, food sales abroad returned to the negative trend, with -3.2%.

While in the first months of the year the exports of this group had marked a strong increase in quantity, but had a weaker performance in value due to the decrease in prices, in May sales have slowed down. According to INSTAT, the exports in quantity of this group expanded by only 3.8% in May, from the 16% that had been the increase for the 4th month.

Machinery, equipment, spare parts are damaged by euros

"Machinery, equipment, spare parts" was another group that showed good performance in recent years, as a result of the entry of factories that assembled parts for the automotive industry. But this group is also suffering from the devaluation of the euro, rising costs and labor shortages. In May, exports fell by 5.3%, while for the 5th month the contraction is 8.3%.

The trade deficit increases again

In May 2024, exports of goods reached the value of 35 billion ALL, decreasing by -12.4%, compared to the same period a year ago and increasing by 0.5%, compared to April 2024. Imports of goods reached the value of 79 billion ALL, decreasing by -1.6% compared to a year ago and increasing by 5.3% compared to April 2024. The trade deficit for this month is 45 billion ALL , increasing by 8.9% compared to May 2023 and 9.4% compared to April 2024.

In this five-month period, exports of goods reached the value of 165 billion ALL, decreasing by -16.1%, while imports of goods reached the value of 364 billion ALL, decreasing by -0.02%, compared to a year ago. The trade deficit reached the value of 199 billion ALL, increasing by 18.9%, compared to the same period of 2023.

Exports increase with Kosovo, decrease with Italy

Progress of trade in goods according to partner countries In the month of May 2024, the countries with which Albania had the largest increase in exports, compared to May 2023, are: Kosovo (3.9%), North Macedonia (20.0%) ), China (80.5%), etc. While the countries with which exports have had the biggest decrease are: Italy (23.7%), Greece (2.7%) and Germany (1.5%).

During this five-month period, the country with which Albania had the largest increase in exports, compared to a year ago, is: China (34.9%). While the countries with which exports have had the greatest increase are: Italy (15.6%), Kosovo (2.6%) and Greece (26.6%).

In the month of May 2024, the countries with which Albania had the largest increase in imports are: Turkey (17.3%), Greece (4.2%) and Spain (1.9%). While the countries with which imports have had the biggest decrease are: Italy (3.2%), China (23.2%) and Germany (6.8%).

During this five-month period, the countries with which Albania had the largest increase in imports, compared to a year ago, are: Turkey (21.4%), Greece (18.4%) and Germany (5.0%). ). While the countries with which imports have had the biggest decrease are: Italy (5.0%), China (11.1%) and North Macedonia (15.1%).

Trade exchanges with EU countries account for 57.3% of all trade. In May 2024, exports to EU countries account for 68.2% of total exports and imports from EU countries account for 52.5% of total imports.

The main trading partners are: Italy (28.5%), China (7.4%), Turkey (7.4%) and Greece (7.2%). Trade exchanges, for the first five months of 2024, with EU countries account for 58.4% of all trade.

In the period January - May 2024, exports to EU countries account for 72.0% of total exports and imports from EU countries account for 52.2% of total imports. The main trading partners are: Italy (28.8%), Turkey (8.9%), Greece (7.3%) and China (7.2%)./ Monitor Magazine