Existing investors are "attracted" by Albania/ Profits are returned to investments. Foreign capital continues to stay in the country
Foreign direct investments in Albania have reached another record in the first quarter of 2025, reaching 362 million euros, according to data from the "Bank of Albania". This is the highest value ever recorded in a quarter and represents an increase of 2.2% compared to the same period in 2024. Meanwhile, in 2024 they were fixed at around 354.4 million euros.
But which indicator has driven this record figure over the past year?
Referring to the institution's figures, the increase in foreign direct investment in our country has come mainly as a result of the increase in reinvested profits by existing investors. Based on the figures, it results that reinvested profits reached 214.5 million euros, increasing by almost 3%, compared to the same period in 2024. Reinvested profits have a weight of 59.2% compared to total foreign direct investment. Compared to a year ago, it seems that the weight to the total has increased.
Meanwhile, on the other hand, foreign direct investment flows in the form of new capital injections account for 40.4% of the total. In the first three months of 2025, this component reached a value of 146.42 million euros, registering an increase of 1.4%, from around 144 million euros estimated in 2024.
But what could be the factors that have influenced the increase in reinvested earnings?
The main factors that seem to have influenced this growth are the higher confidence of existing investors in the domestic market, as well as the increase in profits of businesses already operating in Albania, which have chosen to reinvest to expand and improve their activity.
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