Albania’s FDI Levels Up in Q1, but Job Creation Lags

Albania’s FDI Levels Up in Q1, but Job Creation Lags

TIRANA, June 11

The Foreign Direct Investment (FDI) in Albania rose to €285 mln in the first quarter (Q1) of 2019 or 1.6 percent more compared to Q1 2018. The data were confirmed by the Bank of Albania (BoA) on its recent Balance of Payments report.

The data show that foreign companies continued expanding their activity in Albania. Over €190 million were overseas capital funds while the other part consisted of reinvested earnings by foreign companies that are currently present in Albania.

Albania received higher FDI inflow during the recent years, with the highest peak in 2018 with €1.2 billion.

Yet, the considerable amount of FDI inflow covers a structural weakness of the economy. Only a small part was invest in the manufacturing sector, which expands the production base and increases employment.

Details form the report confirm that most of the foreign investments are focused on four main sectors, energy, extractive industry, immovable properties, and the financial sector. Those sectors have a low impact on labor productivity growth and employment. Therefore, the benefits to the Albanian citizens and economy are limited.

Source: TCh

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