Business Index: Corruption undermines investment confidence in Albania

The 2025 Business Index of the American Chamber of Commerce in Tirana, developed in collaboration with Monitor Magazine, highlights the deterioration of the investment climate in Albania.

Companies operating in the country are facing an increasingly difficult environment, where unfair competition, corruption, bureaucracy, and political uncertainty are undermining confidence to invest and plan for the long term.

In the Business Confidence Index on last year's performance and expectations for the future, the country was rated with only 40.34 out of a possible 100 points. Compared to 2024, the indicator has deteriorated by 6.13 points.

Unfair competition and monopolies, the main concern of entrepreneurship

At the top of the list of problems are monopolies and unfair competition, with 26.11 points, followed by government bureaucracy with 26.39, the domestic political climate with 28.06, the level of the informal economy estimated at 28.19, the lack of a skilled workforce with 28.67 points, and corruption with 28.67 points. All of these factors create a combination that increases the costs of doing business and reduces trust in institutions.

Essentially, these figures do not simply indicate momentary discontent. They reflect a growing level of uncertainty about the country's economic future and a perception that necessary reforms are moving more slowly than market realities require.

"This is an alarm signal for institutions, the business community and all stakeholders interested in the competitiveness and investment climate in the country," said Neritan Mullaj, Executive Director of AMCHAM.

For the fifth year in a row, finding a skilled workforce remains among the top concerns for businesses. About 70% of AmCham members state that finding skilled employees is difficult or very difficult. Emigration, an aging population, and a mismatch between education and labor market needs are creating ever-widening gaps for companies.

During the presentation of the index, the editor-in-chief of Monitor Magazine Ornela Liperi also raised concerns about the country's economic model. According to her, Albania has supported growth mainly on construction, while sectors that create long-term added value, such as industry and technology, have lagged behind. Industry contributes only 12% of gross added value, while agriculture accounts for 18% of the economy, the highest percentage in Europe.

Some positive signals, but reserved expectations

Despite the gloomy outlook, businesses positively assess the supply of electricity, the level of demand for products and services, relations with customs, as well as investments and employment. For the first time, the Index includes indicators on the assessment of the digital environment, where digital infrastructure results in positive performance, while public electronic services and cybersecurity are considered challenges.

Although businesses expect a slight improvement during 2026, the predicted level still remains below the 50-point threshold, which is considered the boundary between a positive and negative perception of the business climate.

Faced with these challenges, the American Chamber proposes reforms related to strengthening regulatory certainty, fighting corruption, increasing transparency, modernizing the tax system, and developing human capital.

During the discussion with the participants at the meeting, the American Chamber and Monitor magazine assessed that Albania has considerable potential for attracting investments and economic development, but restoring business confidence requires concrete reforms, more efficient institutions, and a fairer and more predictable environment for all market actors./ acqj.al