External Sector Developments of the Albanian Economy during 2005

The external sector of the Albanian economy during 2005 is presented with a deep negative balance on current account, caused by a high trade deficit. The trade deficit deepened as a result of the slowdown in the export growing paces and the rapid import increase. Capital inflows have by and large been sufficient in compensating the current deficit, as such allowing an overall positive balance. Foreign reserve at the end of 2005 marked EUR 1.204 billion, fully adequate to meet about 4.7 months of goods and services import.