In August, Albania's trade deficit widened by an annual 17.4%, to Lek 55 billion (Dollar 688.2 million/Euro 599.8 million), the national statistical office said on Thursday.

Exports increased 1.6% year-on-year to Lek 20.5 billion in August, while imports rose 12.6% to Lek 75.6 billion, INSTAT said in a statement.

The annual increase in exports was driven by construction materials and metals, and food, tobacco and drinks, which added 1.3 percentage points each, and minerals, fuels and electricity, which added 0.7 percentage points.

The slowdown in exports was driven by the weak performance of textiles and footwear, as well as sluggish growth in construction materials, metals, minerals, and energy fuels - factors that had a significant impact in July. This represents the weakest performance of the year so far, contrasting with January and February, when exports initially saw a slight decline before subsequently recovering.

The "Textiles and Footwear" group - the industry's largest employer, with a workforce of around 50,000 - has dropped to second place, impacted by a relentless decline in activity. In August, "Minerals, fuels, and energy" - a sector driven by price fluctuations - emerged as the country's largest export group.

According to INSTAT, goods exports reached a value of Lek 20.5 billion in August 2026, marking a 1.6% increase compared to the same period the previous year, but a 39.0% decrease compared to July 2026.

During August 2026, the 1.6% growth in exports was positively driven by the groups "Construction materials and metals" and "Food, beverages, and tobacco" (each contributing +1.3 percentage points) and "Minerals, fuels, and electricity" (+0.7 percentage points), while the groups "Textiles and footwear" (-2.9 percentage points) and "Chemical and plastic products" (-0.6 percentage points) had a negative impact.