The Republic of Albania is located in southeastern Europe, more specifically in the western Balkans. Since the fall of the communist regime in 1991, and particularly since the approval of its new Constitution in 1998, Albania has made important efforts to join the path of democracy and development and to open up to the outside world. integrate in Europe. However, in this journey the celebration of successive elections, both legislative and municipal, has led to polemics and accusations crossed between the two major parties in the Albanian political spectrum: The Democratic Party and the Socialist Party. Both parties have alternated in power in the last twenty years.
Perhaps as a reflection of an immediate inheritance of the previous dictatorship and of a history characterized by the monopoly of power and a scarce disposition to compromise, governments of one or another type have been relatively unstable. On repeated occasions they have been forced to rely on external support for the resolution of deep-seated internal problems. These problems have ranged from the observation of elections to support in criminal investigations to technical assistance for legislative reforms in different sectors of a public administration that pretends neutral and independent. This has been the government’s standard of practice in recent years, and demonstrates willingness to become a fully functional modern (democratic) state.
Despite the relative political instability that the country suffers, its economy has shown remarkable growth. For the year 2017, nominal GDP reached a level of 13.04 billion USD; the economy registered a growth rate of 3.8% in relation to 2016. From an economic activity standpoint, the sectors that have most attracted foreign direct investment (FDI) have been the monetary and financial mediation, the industry processing, telecommunications, and extractive industries. Finally, the Albanian investment figures in the rest of the world are testimonial.
In general terms, Albania remains a preferred investment destination, well ahead of other Eastern European countries. This is due to the great need for development in the country’s infrastructure and energy sources. Albania has been able to develop a policy framework favorable to FDI and has recently launched measures to support the development of the private sector. However, the country needs greater FDI, especially in non-urbanized and rural areas through transnational foreign corporations. The following analysis will delve into the political and economic background, ultimately making it possible to determine the overall condition the country is in.
GDP Analysis by Expenditures