Ratio of Foreign Direct Investment (FDI) and remittances in Kosovo and Albania, 2008-2013

Open Data Albania has conducted a research on FDI in Kosovo and Albania, and the ratio or the share of Remittances to Foreign Direct Investment. Both these indicators are inflows in the balance of payments and are two important indicators for the growth of national economies. The data used were obtained from the Central Bank of Kosovo and the Bank of Albania.

^{Source: Central Bank of Kosovo, the Bank of Albania
Comments and analysis: ODA}

In the 2008-2013 time-frame, FDI in the Republic of Albania remain at higher levels than FDI in Kosovo. During these six years in Albania FDI have an average value of 742 million euros, while in Kosovo this average value is 317 million euros.

For Albania, the value of FDI has been increasing over the years. From 610 million euros invested in 2008, to 923 million euros invested in 2013. So, 1.5 times more FDI for six years. For Kosovo figures show otherwise. The value of FDI in the country has decreased over the years. From 366 million euros invested in 2008, to 259 million euros in 2013. So, in Kosovo Foreign Direct Investment in these six years have been reduced by 29%.

^{Source: Central Bank of Kosovo, the Bank of Albania
Comments and analysis: ODA}

The analysis that compares how remittances are positioned in relation with FDI, highlights the role of each indicator and both of them together in the domestic economy. For Albania, this percentage has been decreasing, which confirms once again the fact that the economy develops over the years with the help of investments more than that of remittances.

For Kosovo, this situation appears in favor of the remittances. This indicates an option that is not very interesting for attracting foreign investment in the country and showed signs of an economy in which the life level and the consumption are closely related to the contribution of the Diaspora as an important category in the economic life of the country.