Albania Facts and Figures

Albania, situated in Southeastern Europe on the Balkan Peninsula, is a country known for its rich cultural heritage and diverse geography. It became a member of NATO in April 2009 and is a candidate for accession to the European Union. With a population of approximately 2.8 million people, Albania is characterized by its vibrant cities such as the capital Tirana, and significant landmarks like the ancient city of Butrint, recognized as a UNESCO World Heritage site. Impressively, Albania boasts one of Europe's oldest national flags, dating back to the 15th century.

Key Historical and Transformative Events

Albania has experienced several pivotal events that have shaped its trajectory over the years. Among these, the collapse of communism in 1991 marked a significant turning point, ending decades of isolation and centrally planned economy. The transition to a market economy brought both challenges and opportunities, fostering economic liberalization and reforms in various sectors. This period of transformation saw Albania open up to the global community, enhancing diplomatic ties and paving the way for integration into European and international institutions. One of the most impactful events in Albanian history was the Kosovo War in 1999, which not only deeply affected Albania politically and economically but also highlighted its role as a regional player in Balkan affairs. The influx of Kosovar refugees posed humanitarian challenges while solidifying Albania's support for regional stability and peace initiatives. This crisis prompted international assistance and reinforced Albania's commitment to fostering regional cooperation, ultimately influencing its foreign policy orientation and socio-economic development strategies.

Demographic Overview

Albania's demographic landscape reflects a population of approximately 2.8 million people as of 2023, with a population density of 103 people per square kilometer. The country's working-age population constitutes 67.2% as of 2022, indicating a significant labor force. The median age is 38 years as of 2024, suggesting a balanced age distribution. Life expectancy at birth stands at 77 years (2022), highlighting improvements in healthcare and living standards. However, Albania faces a negative population growth rate of -1.2% annually as of 2022, influenced by factors such as emigration and low fertility rate of 1.4. The crude death rate is 11.2 per 1,000 persons, with an infant mortality rate of 8.4 per 1,000 live births in the same year. Urbanization is prevalent, with 63.8% of the population residing in urban areas (2022).

Economic Overview

Albania's economy, with a GDP totaling $18.9 billion in 2022, shows resilience with a growth rate of 4.9% the same year, positioning it as the 122nd largest economy globally. Recent inflation rates were 4.8% in 2023 and 3.5% in 2024, reflecting fluctuating economic stability. The country exports goods worth $4.3 billion and imports $8.6 billion as of 2023, contributing to a trade deficit of -10.4% of GDP in 2022. Agriculture constitutes 18.6%, industry 21.4%, and services 47.4% of GDP as of 2022, showcasing a diverse economic structure. Despite challenges, including an unemployment rate of 11.5% in 2019 and 12.3% in 2018, Albania's economy continues to evolve, influenced by sectoral contributions and global economic dynamics.

Public Finance

Albania's public finance landscape reveals significant indicators as of recent years. The country received 1.7% of Gross National Income (GNI) as Official Development Assistance (ODA) in 2022, reflecting international financial support. The net lending/borrowing balance stood at -3.66% of GDP in 2022, improving to -1.14% in 2023, indicating efforts to manage fiscal deficits. General government debt accounted for 67.58% of GDP in 2022, with central government debt fluctuating between 62.12% in 2012 to 66.46% in 2022.

Military Overview

Albania's military comprises approximately 8,000 personnel as of 2016, representing 27.3% of the total population. The country allocates 1.6% of its GDP to military spending as of 2022, up from 1.2% in 2021, reflecting its commitment to defense initiatives. This increase underscores Albania's strategic efforts to enhance national security capabilities amidst regional geopolitical dynamics. The military plays a pivotal role in safeguarding national interests and contributing to international peacekeeping missions, reinforcing Albania's role in global security efforts.

Conclusion

The country's transition from a centrally planned economy to a market-oriented one has been gradual but steady, presenting opportunities amidst challenges. Partnering with a market research agency in Albania is pivotal for navigating this dynamic landscape, leveraging local expertise to navigate regulatory frameworks, consumer behavior shifts, and emerging market trends effectively.