Economy (Albania)
=================


     Overview:
         The Albanian economy, already providing the lowest standard of living in
         Europe, contracted sharply in 1991, with most industries producing at only a
         fraction of past levels and an unemployment rate estimated at 40%. For over
         40 years, the Stalinist-type economy has operated on the principle of
         central planning and state ownership of the means of production. Albania
         began fitful economic reforms during 1991, including the liberalization of
         prices and trade, the privatization of shops and transport, and land reform.
         These reform measures were crippled, however, by the widespread civil
         disorder that accompanied the collapse of the Communist state. Following
         their overwhelming victory in the 22 March 1991 elections, the new
         Democratic government announced a program of shock therapy to stabilize the
         economy and establish a market economy. In an effort to expand international
         ties, Tirane has reestablished diplomatic relations with the former Soviet
         Union and the US and has joined the IMF and World Bank. The Albanians have
         also passed legislation allowing foreign investment. Albania possesses
         considerable mineral resources and, until 1990, was largely self-sufficient
         in food; however, the breakup of cooperative farms in 1991 and general
         economic decline forced Albania to rely on foreign aid to maintain adequate
         supplies. Available statistics on Albanian economic activity are rudimentary
         and subject to an especially wide margin of error.
     GNP:
         purchasing power equivalent - $2.7 billion, per capita $820; real growth
         rate --35% (1991 est.)
     Inflation rate (consumer prices):
         100% (1991 est.)
     Unemployment rate:
         40% (1992 est.)
     Budget:
         revenues $1.1 billion; expenditures $1.4 billion, including capital
         expenditures of $70 million (1991 est.)
     Exports:
         $80 million (f.o.b., 1991 est.)
       commodities:
         asphalt, petroleum products, metals and metallic ores, electricity, crude
         oil, vegetables, fruits, tobacco
       partners:
         Italy, Yugoslavia, Germany, Greece, Czechoslovakia, Poland, Romania,
         Bulgaria, Hungary
     Imports:
         $147 million (f.o.b., 1991 est.)
       commodities:
         machinery, machine tools, iron and steel products, textiles, chemicals,
         pharmaceuticals
       partners:
         Italy, Yugoslavia, Germany, Czechoslovakia, Romania, Poland, Hungary,
         Bulgaria
     External debt:
         $500 million (1991 est.)
     Industrial production:
         growth rate --55% (1991 est.)
     Electricity:
         1,690,000 kW capacity; 5,000 million kWh produced, 1,530 kWh per capita
         (1990)
     Industries:
         food processing, textiles and clothing, lumber, oil, cement, chemicals,
         basic metals, hydropower