Some 19.2 percent of respondents placed access to financing as the most problematic factor for doing business. Second came tax rates with 12 percent of respondents followed by corruption with 10.2 percent of those surveyed
TIRANA, Sept. 9 – Albania climbed 10 places to 78th in the 2011-2012 Global Competitiveness Index covering 142 countries released by the World Economic Forum. The report sandwiched Albania between Romania and Macedonia, placing the country as one of the most competitive in the region. Compared to the 2009-2010 index Albania has climbed 18 steps mainly because of progress in basic requirements such as institutions, infrastructure, macroeconomic environment and health and primary education. Some 19.2 percent of respondents placed access to financing as the most problematic factor for doing business. Second came tax rates with 12 percent of respondents followed by corruption with 10.2 percent of those surveyed. Tax regulations, inefficient government bureaucracy, inadequate supply of infrastructure and policy instability are other factors considered as problematic for doing business in Albania. Property rights were the worst indictor in the Institutions pillar, ranking Albania 115th. Judicial independence and intellectual property protection also fared badly, ranking Albania 101st and 94th respectively. Albania’s best indicators in this category are burden of government regulation and strength of investor protection. In the infrastructure pillar, quality of railroad and port infrastructure remain problematic. As far as macroeconomic environment is concerned, public debt which is currently at the threshold of 60 percent of the GDP ranks Albania 107th. The country’s credit rating ranks 83rd while gross national savings 102th. In the “Goods market efficiency” Albania ranks best in the number of days and procedures to start a business (five days and 5 procedures world’s 9th and 23rd, business impact of rules on FDI 33rd. However, intensity of local competition and effectiveness of anti-monopoly policy remain problematic ranking Albania 122th and 87th respectively. In the financial market development, Albania ranks poor in the ease of access to loans. The 16 commercial banks operating in Albania have significantly tightened lending standards for both businesses and individual as bad loans stand at around 17 percent. Demand for new loans also stands at low levels with businesses hesitating to make new investments because of consumers’ saving trend. The Global Competitiveness Index is based on 12 pillars of competitiveness, providing a comprehensive picture of the competitiveness landscape in countries around the world at all stages of development. The pillars are: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.
