Due to the rising costs, advanced economies have generally lost their historical advantages in producing goods and services, replacing the absent income with debt, which now they have to pay off. Why are these developments important to the Albanian economy?   First, it is necessary to understand that these advanced economies are our major trading partners. They are the main users of our exports and, at the same time, the source of imported consumer goods and fuels.   Second, these economies are the major investors in the Albanian economy and the financial system.   Third, these countries are hosting the Albanian migrants.   Fourth, we believe that another effect relates to the psychological factor, which emerges in the form of consumers’ and firms’ hesitation to consume and invest. Subsequently, the difficulties facing our neighbouring partners are converted into difficulties for the Albanian economy. Any cuts in consumer and investment spending, be it private or public, will later yield cuts in these countries’ investments in Albania, lower demand for exports, lower remittances; in short, the fall in all aggregate demand components in Albania. This would generate the fall in output, the creation of spare capacities, the deterioration of firms’ and consumers’ balance sheets, and a number of other adverse phenomena. At present, the Albanian economy generates nearly as much as half of its potential growth. This gap, which in our terminology is known as “output gap”, is partly explained by the difficulties facing our trading partners.
These are specialized institutions and they are very well-acquainted with the emerging economies and the relevant sectors. In addition to providing financing, they are equipped with and offer technical and financial expertise to enhance the efficiency, transparency and management, and increase employment in the sectors they support; to boost domestic production; to increase employment and, ultimately, stimulate the balancing of external sector’s deficits. Re-orienting the free labour force, capital and the private and public interest towards these advantages offers a simultaneous solution to a number of concerns facing the Albanian economy. This re-orientation is the essence of the economic growth model and it should be the main objective of economic policies and stimulus at a local-level as well. The economic activity of Fier region is a perfect example proving the success of the orientation towards the traded sector. Fier has generally recorded growth above the average of the Albanian economy, and it is ranked the second (after Tirana prefecture) in terms of its contribution to real GDP growth and share in total GDP. At the same time, its current employment rate is about 4% higher than the average employment in the Albanian economy. These economic indicators provide evidence for the direct outcome of the competitive advantages that Fier region offers compared to the other economic regions in Albania. This performance is grounded on a number of characteristics that guarantee the diversity in industry-level production at high tradability.