TIRANA, June 25
Official data from the Bank of Albania (BoA) for the first quarter of 2020 confirm that the energy industry was not the most attractive sector for Foreign Direct Investment (FDI) inflow. This the first time since 2016 that energy investments rank second, leaving the top place to the extractive industry.
Based on the data, investments in the energy sector during January-March 2020 were estimated Euro 70 million, almost down 50 percent compared to Q1 2019. In the meantime, the FDI flow to the extractive industry sector in Jan-Mar 2020 was estimated Euro 76 million, up 50 percent compared to Q1 2019.
According to BoA’s statistics, the total FDI flow in Q1 was estimated at Euro 227 million. The extractive industry and the energy sector accounted for about 65 percent of total FDI flow. Meanwhile, the remaining 35 percent was invested in the service sector, mostly in the financial and information and communication.
The energy sector had the highest FDI inflow for many years mostly due to the Trans Adriatic Pipeline (TAP) and the hydropower plants on Banja and Moglica.
In early June, the World Economic Forum announced that the COVID-19 pandemic has disrupted the flow of foreign direct investments and could cause a 40 percent global contraction in FDI flow.
Read also: Albania has Lowest Corporate Income Tax for ICT Companies among WB6
ICT, a Potential Investment Sector in Albania
Source: Scan TV
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