REPUBLIC OF ALBANIA MINISTRY OF ECONOMY, TRADE AND ENRGY

A L B A N I A Population 3,619,778 habitans Population 3,619,778 habitans Total area 28,748 sq km Total area 28,748 sq km Population growth rate:0.538% Population growth rate:0.538% Birth rate:15.22 births/1,000 population Birth rate:15.22 births/1,000 population Death rate:5.44 deaths/1,000 population Death rate:5.44 deaths/1,000 population Net migration rate: migrant(s)/1,000 population. Net migration rate: migrant(s)/1,000 population. Infant mortality rate:19.31 deaths/1,000 live births Infant mortality rate:19.31 deaths/1,000 live births Total fertility rate: 2.02 children born/woman Total fertility rate: 2.02 children born/woman Religions:Muslim 70%, Albanian Orthodox 20%, Roman Catholic 10% Religions:Muslim 70%, Albanian Orthodox 20%, Roman Catholic 10%

ALBANIA Economy Development Macro-Economic Indicator 2007 Albania economy for the fiscal year 2007 has recorded a sustainable growth and in acordance with foreseen. Albania economy for the fiscal year 2007 has recorded a sustainable growth and in acordance with foreseen. Real aconomik growth rate has rezulted at a level of 6 %. Real aconomik growth rate has rezulted at a level of 6 %. Gross domestic production in nominal terms has resulted at 997 bilion leke, and real GDP is estimated at bilion leke. Gross domestic production in nominal terms has resulted at 997 bilion leke, and real GDP is estimated at bilion leke. Gros domestik production per capita for fiscal year 2007 is estimated at USD per capita or same 9.3 % more than in previous year. Gros domestik production per capita for fiscal year 2007 is estimated at USD per capita or same 9.3 % more than in previous year. Avarage rate of yearly inflation for 2007 was 2.9% towards the 3% predicted. Avarage rate of yearly inflation for 2007 was 2.9% towards the 3% predicted. Economic crediting in country level has resulted on high level at 48.5 % of GDP. The credit ratio of economy refer the DGP has recorded an extention by 8.8% Economic crediting in country level has resulted on high level at 48.5 % of GDP. The credit ratio of economy refer the DGP has recorded an extention by 8.8%

Foreing Trade Development of external sector has follow an growth tendency. Development of external sector has follow an growth tendency. Exports for year 2007 has registered a growth at 29%, meanwhile the imports are increased at 18%. Exports for year 2007 has registered a growth at 29%, meanwhile the imports are increased at 18%. Trade deficit in Albania still remain in high level at 28% of GDP Trade deficit in Albania still remain in high level at 28% of GDP Covering ration (export/import) reached at 23% Covering ration (export/import) reached at 23% Main partner country from EU countries still remain Italy and Greece. Importes and exports (from this countrie) are respectively 35% and 13%. Main partner country from EU countries still remain Italy and Greece. Importes and exports (from this countrie) are respectively 35% and 13%.

Foreign Direct Investment(FDI) Analysing the FDI for 2007 rezulted that FDI for 2007are increased by milion Euro towords 260 milion euro/year in previous year. Analysing the FDI for 2007 rezulted that FDI for 2007are increased by milion Euro towords 260 milion euro/year in previous year. FDI for year 2007 has registered an increase nearly 70% compare to FDI for year 2007 has registered an increase nearly 70% compare to In the energetic the development are optimistic, not only for the achieved concenssion, but also for the expected one to be realized in In the energetic the development are optimistic, not only for the achieved concenssion, but also for the expected one to be realized in 2008.

Employment Employment remain still one of the main priority of government. Employment remain still one of the main priority of government. Unemployment rate has sign a decrease in average %/year. Unemployment rate has sign a decrease in average %/year. Unemployment rate for 2007 is estimated 13.1% decreasing by 0.65 compare with previous year. Unemployment rate for 2007 is estimated 13.1% decreasing by 0.65 compare with previous year. Employment on industrial sector was increased by 7%,mainly by increasing the employment on Employment on industrial sector was increased by 7%,mainly by increasing the employment on

Emploiment (continue) The sectorial strategy on employment seeks to improve the employment service system and vocational education and reduction of unemployment. The main objectives are: The sectorial strategy on employment seeks to improve the employment service system and vocational education and reduction of unemployment. The main objectives are: Creating opportunities for employment, through economic growth. Creating opportunities for employment, through economic growth. Implementation of efficient programs for the development of the labor market through development of information network, vocational traing, and fiscal incentives. Implementation of efficient programs for the development of the labor market through development of information network, vocational traing, and fiscal incentives. The promotion of employment programs will be realised in cooperation of the civil society, business organizations and development of the SME sector. The promotion of employment programs will be realised in cooperation of the civil society, business organizations and development of the SME sector. The government is comitted to undertake a comprehensive reform in education system from the state budget and in cooperation with international financial organizations, and including the contribution of the private sector. The government is comitted to undertake a comprehensive reform in education system from the state budget and in cooperation with international financial organizations, and including the contribution of the private sector. The public expenses for education will cover 5% of the GDP share for the 2009 year. The public expenses for education will cover 5% of the GDP share for the 2009 year.

Migration and impacts on economy. Over more than a decade up to 20% of population of Albania has migrated. Over more than a decade up to 20% of population of Albania has migrated. The economic impact data of emigration are as follow: The economic impact data of emigration are as follow: Based on data, the contribution of the remittances during 10years is 15% of Albania GDP. Based on data, the contribution of the remittances during 10years is 15% of Albania GDP. The contribution of the remittance in the commercial balance during last 10 years is estimated to be 58.8% The contribution of the remittance in the commercial balance during last 10 years is estimated to be 58.8%

National Strategy on Migration and actions taken from Albania Government. The Albania Government has envisage the adoption of National Strategy on Migration. The Albania Government has envisage the adoption of National Strategy on Migration. This strategy complements other interrelated policies such as those cancerning employmet and socio-economic development especially regard to remittance manegement. This strategy complements other interrelated policies such as those cancerning employmet and socio-economic development especially regard to remittance manegement. Also for implementation of strategy is compile and action-plan. Also for implementation of strategy is compile and action-plan. This actin –Plan details for every of 66 measures agreed upon all the necessary elements for its implementation(objectives,activities required, politically responsible body etc) This actin –Plan details for every of 66 measures agreed upon all the necessary elements for its implementation(objectives,activities required, politically responsible body etc) The albania government has decided to create a new agency covering migration policy in a very broad sense, as one of a first step for implementation of Action-Plan. The albania government has decided to create a new agency covering migration policy in a very broad sense, as one of a first step for implementation of Action-Plan.

Reduction of the Informal Economy for Year 2007 There have been colected about 38.8 miliard lek contribution or 2 milliard Albania leke more than the year 2006 There have been colected about 38.8 miliard lek contribution or 2 milliard Albania leke more than the year 2006 The level of the employersamount of social contribution is decreased by 33%. The level of the employersamount of social contribution is decreased by 33%. The insurance scheme is increased with 40 thousand new contributors. The insurance scheme is increased with 40 thousand new contributors.