BANK OF ALBANIA STATEMENT
External Sector Developments of the Albanian Economy over the first quarter of 2009

The overall Balance of Payments for the first quarter of 2009 recorded a reduction of foreign assets of EUR 131 million. The first quarter of year was closed with a current account deficit of EUR 334 million. Compared to the first quarter of 2008, current account deficit increased by about EUR 67 million, from EUR 267 million. Merchandise trade deficit was reduced by EUR 11 million during the first quarter 2009 amounting to EUR 516 million from EUR 527 million in the first quarter of previous year. Capital inflows accounted for EUR 247 million, thus financing about 74 per cent of the current deficit.

I. CURRENT ACCOUNT

Current transactions during first quarter of year 2009 recorded about EUR 1,930 million, 7 per cent lower than in the previous year. Current account recorded a deficit of EUR 334 million, compared to EUR 267 million in the same period of the previous year. Deficit deepening reflects the decline of current transfers surplus (from EUR 243 million to EUR 213 million), a shift of balance side in suffice income category (EUR 20 million) to deficit (EUR 4 million) and deepening of services deficit (from EUR 3 million to EUR 27 million). In the meantime, merchandise deficit was reduced to EUR 516 from EUR 527 million. About 61 per cent of current expenses went for financing the merchandise import, while foreign currency inflows are provided from exports of goods and services (60 per cent) and from one-side current transfers (32 per cent).

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