TIRANA, December 14
Albania has the lowest price levels for investments in Europe. According to the data provided by EUROSTAT, the cost of investments in Albania is about 55percent of the average cost in the European Union countries. The cost is calculated based on the major types of investments such as construction, machinery and equipment purchase, transportation, software, metal products, and electrical equipment.
Based on all these indicators, a final index is created, and results are expressed in price level indices (PLIs), which provide a comparison of countries’ price levels with respect to the EU average.
If the PLI is higher than 100, the country concerned is relatively expensive compared to the EU average, while if the index is lower than 100, then the country is relatively inexpensive compared to the EU average.
“The cheapest country for investments is Albania with a PLI of 55, followed by Macedonia, Turkey and Bosnia and Herzegovina, with PLIs of 56, 58 and 59, respectively,” the report says.
Meanwhile, Norway, Switzerland and Iceland record the highest price levels for investments, with PLIs of 145, 143 and 136, respectively.
The low investment cost is considered a main advantage, yet it is not the most important factor that attracts foreign investors to a specific country.
News Source/ Photo Credit: EUROSTAT