Page 74 - SE Outlook Regions 2022

between the three countries, as well as improved efficiency of transport
services.

However, some of the new developments have run into controversy.
There was fierce opposition to the demolition of the old National
Theatre in Tirana and other projects initiated by Tirana city hall are now
under scrutiny. Environmental groups oppose the plans for the new
airport near Vlora, located in a protected wetland area.

3.1.6 Major Sectors

Tourism is an important sector of the Albanian economy, and the
recovery of the sector was a major driver of the recovery in 2021.
Arrivals, including foreign arrivals, in the peak summer months of July
and August were not far off the pre-crisis peak set in 2019, and
prospects for 2022 are encouraging.

Albania’s large textiles and footwear sector was damaged by the
pandemic as clothing sales slumped when people were stuck at home
during the spring 2020 lockdowns and are making only a gradual
recovery. There are hopes that if people’s lives start to return to normal
in 2022, international clothing and footwear sales will recover, which
would lift the export-oriented sector in Albania. However, higher costs of
inputs, notably of cotton, electricity and transport could make Albanian
producers less competitive.

Albania’s agricultural sector has been suffering as a result of the energy
crisis, which has also pushed up prices of fertilisers. This led to several
protests by farmers from the Lushnje area, who demanded revisions to
the budget and support through the crisis. The ruling Socialists aim to
increase agricultural exports to $1bn a year during their current term in
office.

3.2 Real economy Bosnia & Herzegovina

3.2.1 Retail

Retail trade turnover in Bosnia in October 2021, observed in current
prices, increased by 18.9% in compared to the same month last year.
Trade in food products (food, beverages and tobacco products)
achieved a growth of 10.9%, while trade in non-food products grew by
10.1% compared to October 2020.

74 SE Outlook 2022 www.intellinews.com