IMF: Less investments in Albania

IMF official data indicate that the total investments in the Albanian economy during the 2000-2009 period was 28.7% of the GDP, including the government’s and private sector’s investments. This number peaked in 2008, when the total investments in economy reached 32.5% of the GDP, encouraged by the government’s high expenses for the Durres-Kukes highway construction.

Right after that year, the economy received the first hit from the crisis and the investment pace started falling. In 2011 it went down to 25% of the GDP and for 2012, the IMF data say that for the first time it will go under 25%. The fall has concerned the Bank of Albania, which warned that the economic consequences might be long termed.

The hesitation of businesses to invest is damaging the mid-term perspective of the economic growth. The reduction of the investments has touched the two sectors, the public and the private ones. The government is trying to reduce the investments each year, due to the economic growth and the reduction of budget revenues. Business is suffering the absence of liquidity and hesitates to invest, since the citizens are consuming less.

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