Albania

IV

Economy

Although a modern industrial base was established by the former Communist regime through a series of five-year plans initiated in 1951, the country remains one of the poorest and least developed in Europe. Virtually all industry is nationalized, and farmland is either collectivized or organized into state farms. Albania’s gross national product was US$6,588 million in 2004 (World Bank and OECD estimate), or US$2,930 per capita. In late 1994 the estimated national budget showed a deficit of US$64.1 million.

A

Agriculture, Forestry, and Fishing

About one fifth of the country’s land is arable. Major drainage and reclamation projects since the 1950s have added greatly to the total farmland. The major crops (with 2006 estimates of production) include wheat (230,900 tonnes), maize (245,400 tonnes), sugar beet (21,223 tonnes), and potatoes (150,000 tonnes). Grapes, citrus fruits, olives, cotton, and tobacco are also grown. Efforts have been made to improve the poor quality of a livestock population that in 2006 included some 634,000 cattle, 1.83 million sheep, and 152,000 pigs. Albania’s forests are an important natural resource, yielding wood for fuel, timber, and veneers. In 2005 the total annual fish catch from the Mediterranean Sea and inland waters was 5,275 tonnes.

B

Mining

Mining is an important sector of the Albanian economy; in 2004 the annual output of crude oil was 2.19 million barrels. Other major exploited minerals are copper, nickel, coal, iron ore, and phosphates. Chromite ore is important to the economy, and the estimate of production in 1996 was 143,800 tonnes.

C

Manufacturing

Since the initiation of the five-year plans under Communism, great emphasis has been placed on the development of the formerly small manufacturing sector. Beginning in the late 1950s, Albania established (first with Soviet and then with Chinese assistance) factories producing chemicals, cement, fertilizers, and machinery. Other new plants include oil refineries, textile mills, and an iron and steel mill at Elbasan. Manufactured products also include asphalt, copper items, cigarettes, beer, and processed foods.

D

Energy

With its numerous mountain streams, Albania has great potential for developing hydroelectricity. Annual electric power production in 2003 was about 4.1 billion kWh, of which 95.23 per cent was generated by hydroelectric plants.