Albania’s trade deficit is on track to hit its highest level ever in 2024. Data for the first eleven months of the year shows the deficit has reached 469 billion lek (around 4.7 billion euros), a rise of 72 billion lek compared to the same period last year.
Although the trade deficit is growing, Albania’s currency, the lek, has strengthened, rising by about 8% against the euro. The Bank of Albania has stepped in to stop the lek from strengthening too much, as this has affected trade figures. While imports have increased by 2%, exports have fallen by 14%, mainly due to drops in sectors like construction materials, textiles, and footwear. However, exports of food and drinks have risen.
Total imports were worth 816 billion lek, while exports reached 347 billion lek. The stronger lek, which has traded at 101 to the euro this year compared to 110 last year, has made the decline in exports seem bigger and the increase in imports more modest.
Critics believe that the country’s economic problems are partly linked to money coming into Albania through illegal channels. Some argue that the stronger lek is a result of money from organized crime, which is flowing into the country outside of official trade and loans.
As 2024 comes to an end, Albania faces challenges with its growing trade deficit and the effects of currency changes on its economy.
