Albania, Italian companies worried about the economic situation in the country

Italian companies have expressed concern about economic developments in Albania, the slowdown in growth rates and the "progressive deterioration of the business climate".

In a joint statement the Italian Chamber of Commerce in Albania and Confindustria Albania, the association of Italian companies in Albania, say they have followed with concern the latest data published by Instat on GDP growth in the second quarter of this year, resulting from 2,31%, or at the same value as the first quarter and about half compared to a year ago and the government's expectations for the 2019.

The press release

"The Albanian economy has therefore not been growing for some time at a rate that allows it to grow
employment and improving incomes. A growth of the 2,31% is not to be considered satisfactory nor sufficient to generate new jobs or relaunch a virtuous economic cycle.

Not only has growth almost halved compared to the government's estimates for the current year, but it has halved even if compared to the growth rates of 2017 (4%) and 2018 (4,2%).

Although it is undeniable that the worsening of the data on the growth of the last two quarters depends partly on external and unpredictable issues, such as the scarce rainfall in recent months, it would be objectively reductive to limit the analysis of these negative macroeconomic indicators to the simple lower energy productivity in the country . "- the initial part of the joint statement of the Italian Chamber of Commerce and of Confindustria Albania can be read, which then adds to the dose:

"The worrying reality is that these numbers also depend on a progressive deterioration, aggravated in the last year, of the business climate in Albania.

The majority of Italian and foreign companies, as well as of the Albanian companies themselves, report that too many things are not working as announced, making the creation or development of activities more difficult.
economic - the real and natural source of income and employment.

The functioning of the public administration also raises growing concern among investors, tired of public officials who tend to avoid decisions for which they would, instead, be responsible and to any form of constructive dialogue with companies; the entrepreneurial system has obvious difficulties in finding competent interlocutors, only rarely obtaining adequate answers. ”- reads the release

Finally, according to the two associations representing Italian companies in Albania:

"These obstacles not only fuel the distrust of companies operating in Albania with negative effects on their investment propensity, but also contribute to worsening the country's perception of risk and its attractiveness for any other potential investor.

Nevertheless the attention of the Institutions seems to focus exclusively on the political debate, without analyzing the real causes of the economic slowdown and the climate of growing distrust that seems to involve entrepreneurs, preferring instead to resort to the usual scapegoats, normally attributed to external factors.

The CCIA and Confindustria Albania call for an immediate and renewed commitment on the part of the Government, of its own
officials, of all the Institutions, including the Trade Associations to compare the effectiveness of the reforms and to implement all the actions necessary to give clarity, certainty and predictability to the business environment in compliance with fair, shared and transparent rules. ”- the press release ends.