€120 million in losses: a tough year for Albanian exporters
Albanian businesses are bracing for a challenging end to 2024, with an estimated €120 million in losses due to the euro’s decline and growing geopolitical concerns. The past two years have not been kind to the country’s export sector, with many struggling to keep up as costs rise and demand drops.
Fashion industry feels the impact of global tensions
For Florjan Zekja, an exporter of fashion goods, the ongoing wars in Europe are more than just distant headlines. “When you’re hearing about rockets and nuclear weapons every day, it’s hard to focus on selling clothes,” he says. The fashion industry, once a promising sector for Albanian exports, now faces the challenge of keeping attention while global instability takes center stage.
Government support falls short
Although the Albanian government introduced sovereign guarantees to support businesses, only a small fraction of exporters have managed to access them. For many, the support hasn’t been enough to overcome the growing pressures in the market. “It’s been tough,” says Zekja. “The government’s help was there, but it wasn’t enough for everyone.”
Manufacturing cuts could reach 30%
Albanian businesses that had planned to transition to full-cycle manufacturing or expand their “Made in Albania” products are now dealing with the harsh reality of reduced orders. “If things don’t improve soon, we’ll have to cut production by 30%,” Zekja adds, illustrating the deepening crisis for manufacturers who had once hoped to build a more robust and independent sector.
Exports drop drastically in 2024
The numbers speak for themselves: Albanian exports have fallen sharply, from over 36 billion lek last year to just over 31 billion lek in the past month. Since January, companies have sold 53 billion lek fewer goods in foreign markets. For those in the industry, it’s a stark reminder of how quickly things can change.
Traditional markets struggling too
Albanian exporters have relied on Italy, Germany, and Greece for years, but even these traditional markets are showing signs of weakness. “The demand just isn’t there like it used to be,” says Zekja. The economic slowdowns in these countries are being felt at home, as fewer people are buying goods from Albania.
Looking to the government for help
With little sign of recovery, exporters are calling on the Albanian government to take decisive action. Zekja is among those urging officials to hold a roundtable to assess the damage and discuss potential solutions. “We need support to get through this,” he says. “If we don’t get help now, the future is uncertain.”
