TIRANA, May 26 – Facing prolonged crisis impacts in their home countries, Italian and Greek businesses have considerably increased their presence in Albania where both neighbouring countries are Albania’s top trade partners.
Data published by the country’s state statistical institute, INSTAT, and the central bank shows Italian businesses lead in terms of numbers, followed by Greek and Turkish ones, but lag behind in terms of foreign direct investment.
The number of Italian businesses and Italian-Albanian joint ventures rose to 2,267, up from 1,903 in 2013 and 1,460 in 2012, accounting for 43 percent of total foreign enterprises and joint ventures operating in Albania.
Detailed INSTAT data shows that around two thirds of Italian enterprises operate in the services sector, where they dominate the booming call center service. The remaining one- third of Italian companies are involved in producing goods, with the garment and footwear products, Albania’s traditional top exports, accounting for a considerable number.
Data shows around 70 percent of Italian enterprises and joint ventures in Albania are micro enterprises employing up to four people, followed by 227 medium-sized enterprises of 10 to 49 employees with 12 percent and 131 big enterprises employing more than 50 employees or 6.8 percent of the total at the end of 2013.
The number of Greek companies operating in Albania also rose to 640 in 2014, up from 616 in 2013 and 578 in 2012, according to INSTAT.
Greek businesses, also dominated by micro-enterprises with 1 to 4 employees, but operating with more than 100 medium-sized and big enterprises are focused on the services sector with a considerable presence in the banking and telecommunication sector.
Top trade partners Italy and Greece escaping recession and the start of the Trans Adriatic Pipeline construction are expected to have a major impact on the Albanian economy in 2015 when government and international financial institutions expect a recovery to 3 percent after sluggish GDP growth rates of 1 to 2 percent in the past three years.
Albania’s prospects have in particular improved as top trade partner Italy is heading toward recovery and Greece has escaped 6-year recession.
The two neighbouring countries account for around 50 percent of Albania’s trade exchanges, being the top investors in Albania and the overwhelming source of migrant remittances from an estimated 1 million Albanian immigrants.
Neighbouring Greece, whose position as Albania’s second top trade partner sharply weakened during the past six years, registered a surprise increase in foreign direct investment in 2013 with its FDI stock exceedin 1 billion euros, according to annual Bank of Albania data.
Greek businesses are present in almost every sector of the Albanian economy, including strategic ones such as telecommunications, the banking system, energy, industry, construction, trade and tourism, significantly contributing to the country’s economic growth.
Albania’s top trade partner Italy which accounts for around half of Albania’s exports and 30 percent of imports increased its FDI stock to 503 million euros in 2013, up from 457 million euros in 2012, ranking the third most important foreign investor after Greece and Canada. Italian investments in Albania are mainly focused on garment and footwear manufacturing, energy, banking and health.
