Foreign investments, three times less

Official data from Bank of Albania show that the net flux of the foreign investments that entered the Albanian economy was only 57 million EUR in the first trimester of 2011, almost three times less than 154 million EUR that entered during the first trimester 2010.

Bank of Albania noted that in the first trimester of the year happened an unusual phenomenon, never seen before in Albania. The foreign capital assigned for investments were returned back to the original source.

According to the Bank, 173 million EUR entered Albania in the period January-March 2011. But more than 115 EUR were transferred back outside Albania. Data show that this happened mostly during February, after January 21st events, when foreign companies transferred to their original sources more than 94 million EUR.

And this was not a transaction of revenues, but funds that had arrived in Albania for investments, turned back due the unstable political situation. The prolonged political crisis seems to have put business companies on hold, by freezing all investments. This was also confirmed by the budget numbers. The Albanian government had generated 70 million USD less from tax revenues. According to experts, this causes a strong economic slowdown.

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