Albania, a formerly closed, centrally-planned state, is making the difficult transition to a more modern open-market economy. Macroeconomic growth averaged around 6% between 2004-08, but declined to about 3% in 2009-11. Inflation is low and stable. The government has taken measures to curb violent crime, and recently adopted a fiscal reform package aimed at reducing the large gray economy and attracting foreign investment. Remittances, a significant catalyst for economic growth declined from 12-15% of GDP before the 2008 financial crisis to 8% of GDP in 2010, mostly from Albanians residing in Greece and Italy. The agricultural sector, which accounts for almost half of employment but only about one-fifth of GDP, is limited primarily to small family operations and subsistence farming because of lack of modern equipment, unclear property rights, and the prevalence of small, inefficient plots of land. Energy shortages because of a reliance on hydropower - 98% of the electrical power produced in Albania - and antiquated and inadequate infrastructure contribute to Albania's poor business environment and lack of success in attracting new foreign investment needed to expand the country's export base. FDI is among the lowest in the region, but the government has embarked on an ambitious program to improve the business climate through fiscal and legislative reforms. The completion of a new thermal power plant near Vlore has helped diversify generation capacity, and plans to upgrade transmission lines between Albania and Montenegro and Kosovo would help relieve the energy shortages. Also, with help from EU funds, the government is taking steps to improve the poor national road and rail network, a long-standing barrier to sustained economic growth. The country will continue to face challenges from increasing public debt, approaching its statutory limit of 60% of GDP. Strong trade, remittance, and banking sector ties with Greece and Italy make Albania vulnerable to spillover effects of the global financial crisis.

Albania has an informal, and unreported, sector that may be as large as 50% of official GDP

These are official rates, but actual rates may exceed 30% due to preponderance of near-subsistence farming

12.833% (31 December 2010 est.)

$3.024 billion (31 December 2011 est.)

$2.648 billion (31 December 2010 est.)

$9.951 billion (31 December 2011 est.)

$5.813 billion (31 December 2010 est.)

$9.208 billion (31 December 2011 est.)

$7.953 billion (31 December 2010 est.)

Wheat, corn, potatoes, vegetables, fruits, sugar beets, grapes; meat, dairy products

Food processing, textiles and clothing; lumber, oil, cement, chemicals, mining, basic metals, hydropower

35% of electricity is lost in the system as a result of transmission inefficiencies and theft (2009 est.)

199.1 million bbl (1 January 2011 est.)

849.5 million cu m (1 January 2011 est.)

Textiles and footwear; asphalt, metals and metallic ores, crude oil; vegetables, fruits, tobacco

Italy 48.8%, China 8.4%, Turkey 6.7%, Greece 5.6%, Spain 5.4%, India 4.9% (2010 est.)

Machinery and equipment, foodstuffs, textiles, chemicals

Italy 34.8%, Greece 12.9%, China 6.2%, Turkey 6%, Germany 4.6% (2010 est.)

$2.665 billion (31 December 2011 est.)

$2.541 billion (31 December 2010 est.)

$5.7 billion (31 December 2011 est.)

$5 billion (31 December 2010 est.)