March 03, 2010| Elina Demai, ALBANIAN TIMES
Greek economy crisis is entering in Albania. Found unemployed in Greece emigration is returning back home increasing the numbers of unemployed in the live registers in Albania.
The crashed economy in Greece has now entered Albania and if the Greek tourism which employs 500 000 Albanians, doesn’t pick up quickly the number of unemployment in Albania could rise at all time high. Albanian government is taking all the necessary steps to accommodate those returned from Greece in the tourism sector whilst they bring the experience back home but the number entering every day is much higher then Albania can afford at this time in the tourism sector.
Tourism is now contracting at high with the season preparations but how long is the this going to continue is the question!? How many Albanians will come back is what everyone is asking? Will this have an effect on the 8% growth in Albanian economy that was published at the beginning of the year?
No one can answer those questions but what the government is saying that visitors entering Albania is doubling every year, this will create jobs. At the moment sector of tourism alone employs 350 000 and this will increase to 500 000.
The sector of agriculture is the second largest which employs 400 000 Albanians in Greece and this has been hit the hardest. The reason this has been hit the hardest is that Greek banks are low on capital and loans are hard to get hands on. This has caused businesses and factories shutting down and imports/exports crashing at the bottom with no money in their hands to do business. Greek banks are using the money wisely, at least that little that is left! Economist Andrea Papagalis told Albanian Times: If a loan is given in agriculture sector another is needed in the exporting that product to the consumer, there is not enough money for both! either we produce the tomato or transport the tomato!
The Greek government has announced there will be cuts in civil servants' salaries. This is to ease the financial crisis facing the country but will also mean that people will have less money to spend and this will effect every business and hit the economy even worse overall. If a couple is working in the school they will get a cut of about 10% which means 20% less income in the in the family! Well they afford to go on holidays? Will this effect tourism!? We don't have the answer to that but you can guess!
Albanians who have worked in agriculture in Greece returning back home could find it easier to get employment. Albanian banks had a growth even at the year the banking system collapsed worldwide. Albanian bank have plenty of capital for country's businesses and whilst the economy is on the growth is very easily to secure a loan at a low rate. The government has introduced the tax for unused farm land and this should create jobs for those returning from Greece and bring home the experience gained working in agriculture in Greece. The government has also introduced loans at 0% rates used for agriculture and this sector is forecast to double the product from last year.
The government of Albania has taken all the right steps but the number of Albanians working and living in Greece is 1 200 000 and if half of those returned back home Albanian unemployment registers could hit the roof!
Albania is developing and the economy is on rise. Agriculture and tourism are the two sectors on the rise contracting the double from year on year but is that enough. Albania is not well developed country and with half a million on the registers the unemployment could have an effect in the growth forecasted for 2010.
Tourism in Albania is doing all it can to promote the country, millions are being pumped in to make sure that Albania represents itself in every international forum and makes itself competitor to other Mediterranean countries. TV advertisements about “Europe’s Last Secret” and “Mediterranean Love” Albania, are promoting the country in most prestigious TV channels such as BBC, EuroNews and CNN. This will increase the number of visitors entering Albania which is making itself competitor to the neighbouring countries but will this employ everyone returning from Greece? This remain to be seen!
Albanian economy is on a growth of 5-9% year on year and this is not showing a sign of slow down. Albania was not affected in the 2008 bank crisis and it took all the mandatory steps in preventing a crash in the banking sector.
The director of Bank of Albania Adrian Fullani, declared yesterday that from today the currency of the secondary (arm) banks transferring funds outside Albania is open whilst this was stopped in 2008 caused by the unrest in the world markets and banks loosing big in shares.
Banking Crisis:
In the banking sector in Albania 38% is connected to greek banking system as the secondary banks. Whilst Greek economy is at the edge of disaster the luck of those banks in the hands of Athens! Although Tirana bank, subsidiary of Pireus bank had a growth of 6% last year it has seen job cuts in attempt of cost saving plan.
Business Crisis:
Albanian business has seen a slow down in exports to Greece. Businessman Koço Qirjako whose company exports Mermer tiles and stones to Greece has seen a decline by 40% in exports. He says he is looking into different markets to get rid of the storage he has piled up in the warehouse as he doesn’t see the end of the tunnel in the Greek market. Pallets of tiles are stock on my warehouse and there is no more room for storage but I have no choice but stop production and to pay my employees for staying home. I have 6 months worth of exports piled in my warehouses and I have no where to sell it he says. I have been contacting different markets to get rid of my storage as there is no hope in Greek market to pick anytime soon. Times are tough at the moment and the Greek imports in general have dropped by 40%.
Reportage on Albania showed in CNN and BCC:
All eyes on tourism in Albania:
CNN:
CNN:
EuroNews:
BBC:
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