The US Department of State published today the report on the investment climate in Albania 2025.
The report notes that foreign investors continue to perceive Albania as a difficult place to do business. They cite ongoing challenges for investment and business due to corruption in the public sector, judiciary and public procurement; unfair and distorted competition; a large informal economy; and money laundering.
The report highlights that foreign investors continue to perceive Albania as a difficult place to do business. They cite ongoing challenges for investment and business in the country, which are related to:
corruption in the public sector, judiciary and public procurement;
unfair and distorted competition;
a large informal economy;
money laundering;
frequent changes in fiscal legislation;
property rights; and
poor contract enforcement.
According to DASH, the business community reports that the large flow of illegal income from drug trafficking, smuggling, tax evasion, and corruption distorts competition in the market. Investors report that they can be targets of extortion by public administration, the media, and criminal groups.
"The emigration of young and skilled workers has created labor shortages that affect investment prospects. The business community reports that the large flow of illegal income from drug trafficking, smuggling, tax evasion, and corruption distorts competition in the market. Investors report that they may be subject to blackmail by public administration, the media, and criminal groups."
Reports of corruption in government procurement are common, with investors frequently reporting cases where corruption delays or hinders investment in Albania. The continued use of public-private partnership (PPP) contracts has reduced opportunities for competition, including from foreign investors, in the infrastructure and other sectors. Poor analysis and a lack of technical expertise in the design and monitoring of PPP contracts remain ongoing concerns.
"Some American investors have faced acrimonious commercial disputes with public and private entities, including some that have gone to international arbitration."
The US State Department says that the development of the Albanian economy remains fragile in the face of widespread corruption, organized crime, distorted competition, labor shortages due to emigration, low productivity, and a very large informal sector. And that the country needs to undertake deep structural reforms,” the report says.
DASH investment climate report
“Although the Albanian economy has shown resilience and steady growth in recent years, its development remains fragile in the face of:
widespread corruption,
organized crime,
distorted competition,
labor shortages due to emigration,
low productivity, and
a very large informal sector.
Albania’s GDP per capita is only about a quarter of the EU-15 average. To address these challenges and increase economic convergence with the EU economy, the country needs to undertake deep structural reforms.”
Editorial
