Official data show that the economy is facing a quick drop of
investments. According to the International Monetary Fund, the total
investments on the Albanian economy, realized by the private sector,
have dropped to 24% of the Gross Domestic Product.
This is the lowest level since 2000, when investments fluctuated from 28 to 30% of the Gross Domestic Product. Data from the Ministry of Finances show that most of this is caused by the government investments, which from 10% of the Gross Domestic Product in 2008, shrank to 4.5%.
The deterioration of the budget indicators and the increased debt has narrowed down the public investment spaces in the economy. In the first months of this year, the government has been unable to fund the current spending just to keep the administration working. But it is not only the government what is shrinking investments.
Figures show that the private sector is following the same tendency. According to the International Monetary Fund, private investments fell to 19.1% of the Gross Domestic Product last year, almost 1.1% less than 2009. The difficult economic situation and the consumption reduction have discouraged businesses from holding new investments for local and foreign companies.
Investments are the main resource for employment and economic growth. A quick dropping has shrank the economic growth to the lowest historic figures, and fades away the hopes to create new jobs, regardless the promises made by politicians in campaigns.
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