Country Analysis

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Country Analysis: Albania Introduction Albania is a country in the Southeastern region of Europe. It has a population of around 3.2 million and an area of almost 30,000 square kilometers. It shares borders with other small countries such as Kosovo, Montenegro, Macedonia and Greece. The majority of the population is Albanian with a Greek minority. It also has two coasts, one leading to the Adriatic sea and the other to the Ionian Sea which results in it having a more prospering tourism. Albania’s government is a parliamentary republic with officials elected every four years by majority. It is a member of United Nations (UN) and NATO and it has officially applied for EU membership in 2009. Economy Overview Albania was a closed economy not too long ago, so it is in a transitional state towards a more modern open-market economy. The average GDP growth for the last 10 years has been around 5.8%. Inflation has been low and stable for the past few years which is a compliment to the Central Bank. Recently there were taken some measures to stop violent crimes, and a fiscal reform package was approved which has an aim to increase foreign investment. Money transfers from workers abroad have declined by 3%, which is an important factor for economic growth, and the decline has further increased the already high trade deficit. The agricultural sector of the economy which employs almost half of the labor force even thought it is a small portion of GDP compared to other sectors, is still restricted mainly to operations run by small families and farming due to the lack of better and more modern capital, disputes about property rights, and the widespread small plots of lands which are not efficient. Part of the reason that foreign investment is low in Albania is that it faces energy shortages due to the fact that it relies on hydropower and very old infrastructure Its

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