ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
TIRANA STOCK EXCHANGE
ECONOMIC AND POLITICAL DEVELOPMENTS
Political Environment
Albania is Parliamentary Republic with 140
deputies (political representatives) elected
from sovereign once in four years with general
elections. Main powers are legislative and
executive. On 28 June 2009 Parliamentary
elections were held. After a lengthy counting
process Albania's Central Electoral
Commission (CEC) confirmed the poll was
won by incumbent PM and DP Berisha.
Berisha’s right-wing ‘Alliance for Change’
coalition had secured 70 seats in Parliament,
while the SP gained 65 seats.
Economic Performance
The development of the Albanian economy
has, since the fall of Communism, been fueled
primarily by the service and construction
industries. Tourism, of late, has played an
increasing role in the Albanian economy, and
is growing rapidly. Many people are curious to
explore a country whose borders were closed
to travel for many years.
The country is rich in natural resources
including petroleum, natural gas, coal,
bauxite, chromium, copper, iron ore, nickel,
limestone, salt, timber, and hydro-electric
power.
a fiscal revolution for Albania which now
allegedly features one of the lowest tax rates
in the world. This is believed to be a strong
weapon in the fight against the informal sector,
a carrot for increased FDI penetration and
above all a magic bullet for economic
prosperity, to generate double-digit economic
growth rates. Investors choosing Albania find
that they benefit from ‘the Albanian advantage’
which comes from investing in a politically
stable, fast-growing, low cost, European
economy that is today’s gateway for European
manufacturers into southern Europe.*
Albania's macroeconomic performance has
been impressive since 1998. During the last 8
years the economy has enjoyed virtually
uninterrupted rapid growth in a low inflation
environment. In recent years the growth rate
has averaged close to 6%: the provisional
Economic growth over this period took place
in a climate of growing macroeconomic
equilibrium, evidenced by stable monetary
indicators, low and stable inflation rates and
the reduction of the budget deficit and public
debt. The inflation rate during the past three
years has been anchored within the 2% - 4%
target range. During this period, the rate of
Albania's economic growth has been higher
than that of other SE European countries. The
Albanian government has approved a flat tax
regime of 10%. This move is considered to be
* Information provided by the Tirana Stock Exchange.
Key Information Contacts
Bank of Albania www.bankofalbania.org
Ministry of Finance www.minfin.gov.al
Albanian Institute of Statistics www.instat.gov.al
Albanian Financial Supervisory Authority www.amf.gov.al
Ministry of Economy www.mete.gov.al
REAL GDP
(ALL millions)
CONSUMER PRICES (% CHANGE PA; AV)
(%)
700 3.4
600 3.2
500 3.0
400 2.8
300 2.6
200 2.4
100 2.2
0
2.0
2005
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