Euro "hits" textiles, fuels increase imports/ Exports grew only 2.8%, trade deficit widens again
Albanian exports continued to grow in May, but at a moderate pace, while imports expanded more rapidly, deepening the trade deficit again. Behind the overall figures lie two contrasting developments: the continued weakening of the textile and footwear sector, while fuel imports are increasing under the influence of tensions in international energy markets.
According to INSTAT data, in May 2026 exports reached 32.7 billion lek, an increase of 2.8% compared to the same month a year earlier, while imports increased by 4.1%, reaching 80.9 billion lek. As a result, the trade deficit widened to 48.2 billion lek, an increase of 5.1% in annual terms.
The largest positive contribution to exports was made by food, beverages and tobacco, as well as construction materials and metals, partially offsetting the weakness of traditional sectors. Conversely, textiles and footwear had the largest negative impact, with -4.3 percentage points, confirming the difficulties the garment industry is going through.
The strengthening of the lek against the euro continues to put pressure on exporters, especially the tailoring industry, which executes the majority of contracts in euros. The low exchange rate has reduced income in lek and weakened the competitiveness of Albanian producers in European markets.
On the other hand, the group "Minerals, fuels and electricity" had the greatest impact on imports, with a positive contribution of 3.2 percentage points to the annual growth of imports. The development comes at a time when tensions in the Middle East and uncertainties in global energy markets have kept fuel supply costs and prices high.
In terms of partner markets, Albanian exports increased towards Kosovo and Greece, while they decreased towards Italy and Germany. On the other hand, imports expanded mainly from Italy and China, while they contracted from Germany and Spain, indicating a greater orientation of supplies towards Italy and Asian markets.
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