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Intangible implications of FDI in Albania

Intangible implications of FDI in Albania

In the last year Albania appears 58 Rank among 190 economies including Montenegro and Croatia 51 and 43 respectively according to “Ease of Doing Business” in a scale from 0-100. Contradictory Foreign Direct Investment inflows exhibit a downward trend from 9.8% – 8.5% of GDP compared to the last quarter.

According to IMF this implies FDI inflows in Albania to primarily serve as main intangible tool in financing Current Account Imbalances from huge discrepancy of national savings and investments. Whereas in most Balkan Countries as Montenegro, FDI Inflows have more tangible spillover effect in Know How and Technology encouraging general potential economic growth of a country.

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This emerges a MUST for Albania to properly use the eases of business environment to increase FDI attraction for sound investment.

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