This information comes from the assessment conducted in country for the Albania report, which was published in September 2000.
The Republic of Albania emerged nine years ago from over 44 years of isolation from the world economy and culture. Emerging from its self-imposed cocoon, Albania entered the modern world with only minimal understanding of, and preparation for, democratic government and market economics. The international community was quick to supply aid and technical assistance as the formerly controlled economy fell apart and Albania began to find its way. In the nine years since entering the modern world, the country has made significant progress, but is still a long way from economic and political health and stability.
For the past several years, economic indicators have been positive, showing both increased stabilization and much-needed growth. For the past five years, with the exception of 1997 when extensive national pyramid schemes collapsed and consumed 60 percent of the GDP, Albania has enjoyed annual growth rates of 7 percent to 8 percent. Last year, the currency moved from slow inflation to deflation, and has remained strong. The balance of trade, however, continues at unsustainable negative levels. Substantial investment will be needed in agriculture, industry, and services in the short and long term to revive existing productive sectors and create new ones.
