FDIs and remittances in 2015

Open Data Albania based on data published by the Bank of Albania is updating the value of remittances and Foreign Direct Investments, FDI, in 2015. In an analysis during 2002-2015 period, it is observed that in the last six years the value of FDIs is higher than the value of remittances. In 2010, when this tendency was reversed, the greatest difference between the value of remittances as deliveries from emigrants and the value of foreign direct investments was recorded.

^{Source: Bank of Albania
Comments and Analysis: ODA}

^{Source: Bank of Albania
Comments and Analysis: ODA}

The share of remittances in FDIs has been falling from year to year thus confirming reduction of the weight of emigrants and their contribution to the country?s economy. However, the tendency to have foreign investments and a better employment market in the country is still too fragile and not stable at a time when their growth is due to privatization and non-direct investments by foreign companies in the country.

^{Source: Bank of Albania
Comments and Analysis: ODA}

FDIs and remittances are entering inflows of the balance of payments and therefore they both are important indicators for the growth of national economies. The trend followed by these two indicators during 2002-2015 time frame seems too much interesting. Until 2006, immigrants brought home on average four times more remittances than foreign direct investors. After 2006, they not only brought far less monetary value, but after 2010 remittances from emigrants were on average 1.3 times lower than the value of foreign direct investments.

This testifies once again the fact that if during the first eight years remittances helped the economy to develop since they occupied a very important part of GDP, in the last six years this situation changed in favor of FDIs.