TIRANA, January 11
The World Bank (WB) classifies Albania as one of the economies with the highest level of foreign investments for the Europe and Central Asia regions. The recent report on Global Economic Prospects issued by the WB says that foreign direct investments in Albania during 2015accounted for nine percent of the Gross Domestic Product (GDP) thus, leaving behind many other countries.
According to the WB, only three other countries in Europe and Central Asia regions reflected a higher level of investments. Those are Montenegro, Turkmenistan and Georgia.
Moreover, all the other economies attracted less foreign investments. FDI in the two neighbouring countries of Macedonia and Bosnia and Herzegovina respectively accounted for three and two percent of their GDPs.
The Albanian economy benefited during the recent years by major investments in the energy sector such as the Trans Adriatic Pipeline (TAP) and Devolli Hydro Power Plant.
Based on the data provided by the report, private investments, especially foreign ones, were the main source of economic growth, which during 2016 was 3.2 percent. Meanwhile, it is expected to reach the level of 3.5 percent during this year.
“Growth accelerated in Albania, Croatia, Romania, and Serbia reflecting strong domestic demand supported by low energy prices, faster investment growth helped by the disbursement of EU structural funds, labor market improvements, particularly in Albania, and the VAT tax cut in Romania,” the report said.
News Source: TCh
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