Economy

Since the fall of communism in 1990, Albania has launched economic programmes towards a more open-market economy. The democratically elected government that assumed office in April 1992 launched an ambitious economic reform programme to halt economic deterioration and put the country on the path towards a market economy. Key elements included price and exchange system liberalization, fiscal consolidation, monetary restraint, and a firm income policy. These were complemented by a comprehensive package of structural reforms, including privatization, enterprise, and financial sector reform, and creation of the legal framework for a market economy and private sector activity. Most prices were liberalized and are now approaching levels typical of the region. Most agriculture, state housing, and small industry were privatized, along with transportation, services, and small and medium-sized enterprises. After severe economic contraction following 1989, the economy slowly rebounded, finally surpassing its 1989 levels by the end of the 1990s. Since prices have also risen, however, economic hardship has continued for much of the population. In 1995, Albania began privatizing large state enterprises. Since 2000, Albania has experienced a more rapid expansion of its economy.
Following the signing of the Stabilisation and Association Agreement in June/July 2006, EU ministers urged Albania to push ahead with reforms, focusing on freedom of press, property rights, institution building, respect for ethnic minorities and observing international standards in municipal elections. Albania has made an impressive recovery, building a modern and diversified economy. Recent administrations have also improved the country's infrastructure and opened competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution and airports. Tourism in Albania is a large industry and is growing rapidly. The most notable tourist attractions are the ancient sites of Apollonia, Butrinti, and Krujë. Albania's coastline is becoming increasingly popular with tourists due to its relatively unspoiled nature and its beaches.