The foreign direct investment (FDI) is an important source of capital flows and economic development in Albania. Open Data Albania has conducted a research on the amount of FDI as a percentage of GDP in Albania compared to South Eastern Europe countries, 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.

In 2010, FDI as a percentage of GDP is shown in the following graph:


Source: Bank of Albania

Comments and Analysis: ODA

As it can be seen in the graph, the country with the highest level of FDI to GDP is Montenegro (138%), while the country with the lowest level is Albania (37%).

During the years, the weights have changed, as can be seen by the following table:

Foreign Direct Investment as a Percentage of  GDP


Source: Bank of Albania
Comments and Analysis: ODA

During the last 6 years, the FDI to GDP level of Albania has been continually increasing, but at the same time, it is the lowest of all the countries in the region, during all the years.

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.