Business Confidence in Albania at lowest levels since 2012

Business Confidence in Albania has now been dropping for two years in a row, and is currently
standing at 37.6%, according to data published by the American Chamber of Commerce in a
yearly report which details the overall business climate in Albania. This level of business
confidence is one of the lowest in the region.
A considerable majority of participants identify the overall business climate in Albania as
unfavorable. Such low levels of confidence were last evidenced in 2012. Only 9% of participants
considered the business environment in Albania to be favorable.
Whilst the report acknowledges that some of the decrease in confidence levels comes as a result
with the devastating effect of the COVID-19 pandemic on the economy, a large percentage of
participants in the poll felt that the government had not shown a commitment to improving the
overall conditions under which businesses operate in Albania, specifically with public
institutions.
Rising taxation levels were another point of concern for large and medium-sized businesses.
Small businesses were among those who were hit the hardest from the recent tax increases.
Participants also stated that more needs to be done to get rid of the bureaucracy that
characterizes dealings of businesses with public institutions.
One participant stated that many foreign investors decide not to invest in Albania due to the
business climate and the fact that getting the necessary permits without informal connections is
usually quite difficult.
A majority of participants agree that Albania suffers from endemic corruption, and that weeding
out such deep seeded corruption in the public sector would require an overhaul of the public
administration.