The Ratio between Foreign Investments and Remittances during 2008-2017

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Open Data Albania is updating its data on remittances and Foreign Direct Investments (FDI) for the 10-year period from 2008 until 2017. The Bank of Albania is the source of information for this update. For this reporting period (2008-2017), the value of FDIs is increasingly higher than the value of remittances. While the difference between FDIs and remittances has been relatively small during 20013-2017, such difference has increased because of more investments on one hand and decreased remittances on the other. The biggest difference was marked in 2013, when we had the highest level of foreign direct investments and the lowest level of remittances. In this year, foreign direct investments reached 944.7 million Euros, while remittances dropped to 546.8 million Euros. The highest number of investments in 2013 came as a result of the privatization of several public assets, including the selling of two hydropower stations to the Turkish iron processing company, Kurum. The value of such privatization was 110 million Euros. On the other hand, 2013 marked also the peak of the crisis of the Euro zone economy, which was translated into the lowest historical level of remittances from the Albanian immigrants by only 546.8 million Euros.

Remittances and FDIs, 2007 - 2018 in mln Euro

 
Source: BoA
Comments and Analysis: ODA
  
Source: BoA
Comments and Analysis: ODA

PAfter the record reached in 2013, the difference between the value of FDIs and remittances narrowed down to some extent. However, such difference remains higher than the first five years of this decade.
Burimi: BSH
Komente dhe analiza: ODA

Open Data Albania has also investigated into the ratio between Remittances and Foreign Direct Investments. The highest share of remittances against foreign investments was marked in 2008, when the remittances from immigrants represented 97% of FDIs. Until 2012, the share of remittances against FDIs fluctuated from 81% to 95%. However, after this year such share has had a significant drop. In 2013, which represents the peak of the Euro zone crisis, the share of immigrants’ remittances between Foreign Direct Investments dropped to 58%, which represents also the lowest historical level. There has been a gradual recovery after that year, so immigrants’ remittances last year reached 70% of the Foreign Direct Investments. Remittances and Foreign Direct Investments represent incoming flows to the Balance of Payments and they are two important indicators for the national economy. Foreign Direct Investments (FDI) includes investments by both foreign individuals and institutions in the Albanian economy, where investment makes the foreign investor the owner of more than 10% of the capital of the enterprise in Albania. Remittances represent inflows of net transfers in the form of money sent by Albanian immigrants.




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    Contributer: ODA
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