THE EFFECTS OF THE EURO’S DECLINE ONTHE ALBANIANECONOMY

Aim: This study aims to analyze in detail the sectors that have suffered from the euro’s fall and evaluate their situation in the Albanian economy. This article investigates the impact of the euro’s devaluation on the primary economic sectors, including imports and exports. Since the clothing sector was among the most im­pacted by this drop, particular attention has been paid to the export of leather and its products, as well as the textile and footwear sectors. Methods: The data used in the analysis were sourced from the primary institute that published the data. These institutions, which are in charge of collecting and releasing accurate and reli­able economic data, include the Institute of Statistics and the Bank of Albania. Data analysis was done using descriptive analysis. This analytical technique was used to draw attention to the shifts and effects that the exchange rate transactions had over the time under study. As a result, now we have the chance to comprehend how and why these developments have affected the Albanian economy. Results: The results in this study allow us to see how changes in exchange rates have affected the main sectors of the economy. Since import, export, and tourism are the industries with the highest income in euros rather than the native currency, they have seen the largest impact. Conclusions: Despite the measures taken by the main institutions, these meas­ures didn’t have the expected impact. What these businesses should do to protect themselves from the fall of the euro is to either make contracts in the national currency or use forward contracts for the sale and purchase of euros at the euro rate when the initial contract was concluded.