Shqipëria Posted on 2025-06-25 11:04:00

Is the interest of foreign investors "fading"? - BoA: Investments fell by 14% compared to the end of 2024

From Ledina Elezi

Is the interest of foreign investors "fading"? - BoA: Investments fell

It seems that in the first quarter of this year, Albania has been less attractive to foreign investors. The latest data from the Bank of Albania shows that foreign investments have decreased by 14% compared to the end of last year.

Specifically, the flow of foreign direct investment in January-March was recorded at 362 million euros from 423 million at the end of 2024. However, compared to the same period a year earlier, foreign investment increased by 2.3%.

But which sectors absorb the most investment?

Investments result in a decline in almost all sectors. However, real estate continues to be the activity where the majority of foreign investments are concentrated, followed by financial and insurance activities. In other words, about 29% of investments are in real estate, 21% in financial and insurance activities, 14% in the extractive industry, from 9% of investments result in the processing industry and wholesale and retail trade, repair of vehicles or motorcycles.

Despite the fact that investments in the construction sector are recorded to a very small extent compared to other sectors, they result in having had the largest contraction on a quarterly basis, followed by professional, scientific and technical activities, or administrative and support services.

Official statistics show that investments in real estate activities fell to 104 million euros in the first three months of 2025, a decrease of 5.4% compared to the last quarter of 2024. Meanwhile, the flow of foreign direct investment in financial and insurance activities was recorded at 75 million euros and in the extractive industry at 51 million euros.

Activities that are little or not at all attractive to foreign investors turn out to be education, agriculture, forestry, fishing, accommodation, food service, health, social work activities, arts, entertainment, recreation,

 

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