GDP and Productivity Indicators of Albanian Governance, Through Innovations and Knowledge Transfer strategies


  • Alba Dumi Dean of Graduate School”Ismail Qemali” Vlora University
  • Inilda Peto “Ismail Qemali” Vlora University
  • Oltjana Alushaj “Ismail Qemali” Vlora University


Albania's economy has improved substantially over recent years and has outperformed many other countries in the region.
However, it is still considered one of the poorest countries in Europe. According to the Bank of Albania, per capita income was $4,070 in
2009, and was expected to reach $4,200 in 2010. According to preliminary data by the World Bank's Poverty Assessment Program,
12.4% of the population lived below the poverty line in 2008, marking a considerable improvement from 25.4% in 2002; this decline in
poverty levels was due mainly to higher per capita GDP. The official unemployment rate is 13.52%, with almost 60% of the workforce
employed in the agricultural sector, although the construction and service industries have been expanding recently. Albania is open to
foreign investment and increasing FDI is a top priority for the Albanian government. Albania has put in place a liberal foreign investment
regime, including a 10 percent flat corporate and income tax and has taken measures to improve the business climate by streamlining
business procedures through e-government reforms. These improvements along with NATO membership and progress toward EU
integration have contributed to the increase in investor interest during the last couple of years. Promising sectors for foreign investors
and include: energy (including alternative energies), mining, transportation, telecommunications, and tourism. Tourism has been boosted
significantly by ethnic Albanian tourists from throughout the Balkans. GDP is comprised of services, including trade, hotels and
restaurants (21%), transport (5.5%), and communication (4.5%) agriculture (19%); construction (14%); industry (10%) and remittances
(9%). The Albanian economy has been partially sheltered from the global financial crisis and the economic downturn. The International
Monetary Fund (IMF) projects growth at 3.4% and 3.6% for 2011 and 2012 respectively. A reduction in remittances from Albanian
workers abroad has constrained economic activity, although exports grew in 2010. The country?s geographic position places it at the
crossroads of Western and Eastern Europe. A stable U.S. ally, Albania is a member of NATO, the WTO and is in the process of applying
for candidate status in the European Union. During the global financial crisis, bank deposits shrank considerably and lower liquidity
pushed commercial banks to tighten lending. While current bank deposits have reportedly surpassed pre-crisis levels and bank liquidity
has improved, the demand for credit is still low. In December 2009, the growth rate of loans dropped to 10% from 35% in 2008. The low
demand for credit continued into 2010, with the growth rate of loans slowing to 9.1% for the first 6 months of 2010. In general, the
banking sector remains viable, well capitalized, and able to further finance the economy, as the ratio of loans to deposits, approximately
65%, is still low compared to Western standards.


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How to Cite

Dumi, A. ., Peto, I. ., & Alushaj, O. . (2012). GDP and Productivity Indicators of Albanian Governance, Through Innovations and Knowledge Transfer strategies. Mediterranean Journal of Social Sciences, 3(9), 21. Retrieved from