Weak Euro/Exports Under Pressure

2026-06-23 13:34:00, Ekonomi CNA

One of the topics that has most shaken the economy is the euro exchange rate. For some citizens who receive remittances from abroad, currency fluctuations directly affect their income. For exporters, the blow has been even more pronounced.

When the euro depreciates sharply against the lek, companies that sell abroad receive less revenue when they convert it. This is not cold financial theory. It is a concrete problem for tailors, manufacturers, agribusiness and other sectors that work with tight margins. If costs are paid in Albania and revenues are collected in euros, exchange rate fluctuations can quietly eat into profits.

On the other hand, the government and financial institutions have also read the strengthening of the lek as a sign of stability or foreign exchange inflows from tourism, construction and remittances. But even here there is room for skepticism. Because when a currency strengthens in an economy with a weak production base, the question is not only how good the exchange rate looks, but how much damage it causes to the sectors that actually produce.

Economy today/ What's moving?
June 23, 12:51

So, yes, a weak euro may seem like good news for imports or for those who pay less for some goods from abroad. But for domestic production and exports, the picture is not so clear. And that's why economic news should be read with a critical nerve, not with automatic enthusiasm.

Salaries have increased, but is this enough?

The debate over wages has become inevitable. In the public sector there have been moves, announced increases and promises of improvement. In the private sector, especially in trade, services and manufacturing, the picture is more uneven.

Yes, there are wage increases in some sectors. Yes, the labor shortage has forced some businesses to offer more. But this is not necessarily an indicator of a healthy labor market. In many cases, it is simply a reaction to mass attrition and the immigration crisis. In other words, wages are rising not because the economy is distributing profits more fairly, but because the market is emptying.

Euro deepens decline, approaches the limit of 94 lek
June 22, 14:54

This creates a strong contradiction. On the one hand, businesses complain that they cannot find workers. On the other hand, citizens complain that wages still do not cover the cost of living. Both sides are right. The problem is structural. Low productivity, informality, lack of serious investment in skills and a climate where employees are often seen as costs, not capital./ CNA