d 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 operated on the principle of central
planning and state ownership of the means of production. Fitful economic
reforms begun during 1991, including the liberalization of prices and trade,
the privatization of shops and transport, and land reform, were crippled by
widespread civil disorder. Following its overwhelming victory in the 22
March 1992 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 major republics of the former Soviet Union and the US and
has joined the IMF and the World Bank. The Albanians have also passed
legislation allowing foreign investment, but not foreign ownership of real
estate. 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. In 1992 the government tightened
budgetary contols leading to another drop in domestic output. The
agricultural sector is steadily gaining from the privatization process. Low
domestic output is supplemented by remittances from the 200,000 Albanians
working abroad.
National product:
GDP - purchasing power equivalent - $2.5 billion (1992 est.)
National product real growth rate:
-10% (1992 est.)
National product per capita:
$760 (1992 est.)
Inflation rate (consumer prices):
210% (1992 est.)
Unemployment rate:
40% (1992 est.)
Budget:
revenues $1.1 billion; expenditures $1.4 billion, including capital
expenditures of $70 million (1991 est.)
Exports:
$45 million (f.o.b., 1992 est.)
commodities:
asphalt, metals and metallic ores, electricity, crude oil, vegetables,
fruits, tobacco
partners:
Italy, Macedonia, Germany, Greece, Czechoslovakia, Poland, Romania,
Bulgaria, Hungary
Imports:
$120 million (f.o.b., 1992 est.)
commodities:
machinery, consumer goods, grains
partners:
Italy, Macedonia, Germany, Czechoslovakia, Romania, Poland, Hungary,
Bulgaria, Greece
External debt:
$500 million (1992 est.)
Industrial production:
growth rate -55% (1991 es