FDI grows to 213 mln euros in Q3

TIRANA, Dec. 14 – Foreign direct investment, one of the main sources of the economy’s growth representing a record 8.2 percent in 2009, grew to 213 million euros during the third quarter of 2010, 39 million euros more compared to the revised second quarter data and 48 million euros more year-on-year.
In total, FDI during the first nine months of this year registered 563 million euros, down from 578 million euros during the same period last year. Interestingly, FDI flowing out of the country registered for the first time a positive 10 million euros figure in the third quarter, positively contributing to the FDI inflow of 203 million euros.
Previously published Bank of Albania data showed FDI registered a considerable drop in the second quarter of this year dropping to 171 million euros, down from 293 million euros during the same period last year. Data showed FDI increased by 14 million euros compared with the first quarter of this year. FDI during the first half of this year totaled 325 million euros, down from 413 million in the first half of 2009.
Government said it was not worried about the 21 percent drop in foreign direct investment (FDI) registered in the first half of this year compared to the first 6 months of 2009 when 150 million euros collected in privatization revenues were calculated as FDI. Speaking to reporters after presenting the findings of a European Commission report on candidate and pre-accession EU countries, deputy Economy Minister Enno Bozdo said FDI in the first half of 2009 was influenced by the strategic privatizations of the electricity distribution operator (previously known as OSSH and now as CEZ distribution after the Czech company), and the remaining state owned minority stake of AMC, both worth 150 million euros.
“If FDI collected from strategic privatizations is not taken into account, we will notice that FDI in the first six months of this year increased by 18.7 percent compared to the same period in 2009 which is a really positive figure,” said Bozgo.
Asked if the EC report considered the ongoing political stalemate between the majority and the opposition over last year’s general elections a barrier to the economy, Bozgo said “Albania’s economy continues performing well, differently from other regional countries, which means that what the media describes as political deadlock has a very limited impact.”