Foreign Direct Investment in Albania

The foreign direct investment (FDI) is still an important source of capital flows and economic development in Albania. Open Data Albania has conducted a research work on the amounts of FDI in Albania, based on datasets provided from the Bank of Albania.

The FDI includes foreign institutional or individual investments in an enterprise operating in the domestic economy if 10% or more of the capital of the enterprise is owned by the investor.

Over the last decade, the FDI has changed as shown in the following graph:


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

As it can be seen in the graph, the value of FDI has been fluctuating over the past 20 years. In the end of 2010, the FDI was at its highest level for the considered period, at 1.11 billion USD. The lowest value was reached in 1999 at 41 million USD.

The largest increase experienced by the FDI is observed in 2000 when its growth rate was 249%, while the largest decrease corresponds to the 1997 Albanian crisis, the FDI decreased by 47%.

The FDI is an important indicator of the foreign investor confidence in a country: it lowers in cases of economic and political crises, and it grows when the economic and political environment is improving.

The entire dataset is displayed in the table below:

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