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ALBANIA - Country overview
Albania's economic freedom score is 66.6, making its economy the 50th freest in the 2022 Index. Albania is ranked 30th among 45 countries in the Europe region Index. Its overall score has increased by 0.1 point, with a dramatic improvement in fiscal health offsetting lower scores for the judicial effectiveness and tax burden indicators and a sharp decline in business freedom.
Albania is ranked 30nd among 45 countries in the Europe region, and its overall score is below the regional average but above the world average. Albania’s transition to a more open and flexible economic system has been facilitated by a decade of substantial restructuring. Progress in income growth and poverty reduction has been considerable. A competitive trade regime supported by a relatively efficient regulatory framework has encouraged the development of a growing entrepreneurial sector.
Despite this progress, however, more reforms are needed, especially in the area of rule of law, to encourage the growth of economic freedom and ensure continued vibrant economic development.
QUICK FACTS -ALBANIA
• Population:
- 2.9 million
• GDP (PPP):
- $34.2 billion
- 2.6% growth
- 2.0% 5-year compound annual growth
- $11,840 per capita
• Unemployment:
- 16.3%
• Inflation (CPI):
- 1.3%
• FDI Inflow:
- $1.1 billion
BACKGROUND
The Balkan nation of Albania transitioned from Communist rule to Europe’s newest multiparty democracy in 1991. The political situation stabilized after state-sanctioned pyramid schemes collapsed in 1997. Edi Rama became prime minister in 2013, and his Socialist Party won an outright parliamentary majority in June 2017. Albania secured European Union candidacy status in 2014, and EU accession is a major goal of the new government. The economy is dominated by agriculture, which employs about half of the workforce, but services and tourism are increasingly important. The country remains one of the poorest in Europe, with sluggish economic growth hindered by a large informal economy and weak energy and transportation infrastructure. High unemployment and a lack of opportunity spur substantial emigration.
Protection of property rights is still being reestablished after the long Communist era. Clear titles to property are difficult to obtain. Endemic corruption, most apparent in the judiciary, seriously limits government accountability. The constitutionally independent judiciary is subject to political pressure, intimidation, and limited resources. Albania wants to join the European Union but cannot fully qualify without implementing judicial reforms required by the EU.
The top individual income tax rate is 23 percent, and the top corporate tax rate is 15 percent. Other taxes include value-added and inheritance taxes. The overall tax burden equals 27.2 percent of total domestic income. Over the past three years, government spending has amounted to 30.1 percent of total output (GDP), and budget deficits have averaged 3.7 percent of GDP. Public debt is equivalent to 71.5 percent of GDP.
In 2016, new construction was facilitated by the reintroduction of building permits. Regulations and laws governing business activity are changed regularly without any input from the business community. The rate of informal employment is high. The government liberalized the power sector in 2017 by permitting businesses to buy electricity at market rates instead of forcing them to buy from the state-owned distribution authority.
Trade is significant for Albania’s economy; the combined value of exports and imports equals 74 percent of GDP. The average applied tariff rate is 1.1 percent. Nontariff barriers impede some trade. Government openness to foreign investment is above average. The financial system remains relatively well developed and stable. The banking sector is well provisioned, but the share of nonperforming loans has been rising.
Source: World Bank
Kosovo is a parliamentary republic. It declared independence on February 17, 2008 and is recognized as an independent country by 114 out of 193 United Nations members.
By 23 out of 28 European Union (EU) members. Kosovo is a potential candidate for EU membership, a process that was accelerated with the signing of the Stabilization Association Agreement in October 2015, in force since April 2016. The current Government was voted in on September 9, 2017.
Kosovo 2022
Population 1,952,701
GDP, current US$ billion 7.1
GDP per capita, current US$ 3,877
Life Expectancy at Birth, years 71
Age structure
• 0-14 years: 24.07% (male 241,563/female 223,568)
• 15-24 years: 16.95% (male 170,566/female 157,063)
• 25-54 years: 42.56% (male 433,914/female 388,595)
• 55-64 years: 8.67% (male 85,840/female 81,782)
• 65 years and over: 7.75% (2020 est.) (male 63,943/female 85,940)
Although Kosovo’s economic growth has outperformed its neighbors and been largely inclusive, it has not been sufficient to significantly reduce the high rates of unemployment; provide formal jobs, particularly for women and youth; or reverse the trend of large-scale outmigration. The growth model relies heavily on remittances to fuel domestic consumption but has recently shifted toward more investment- and export-driven growth.
Kosovo’s current growth and poverty reduction strategy needs to address the infrastructure bottlenecks, particularly in energy; create an environment more conducive to private sector development; equip the young population with the skills demanded by employers; provide financial protection to citizens to achieve better health outcomes; and build up governance and rule of law to fully reap the benefits of EU integration, unleash productivity gains, and create quality jobs that foster inclusion. Gender gaps in access to economic opportunities remain one of the main challenges for Kosovo. Further actions are also needed to promote environmental sustainability, including the fulfillment of the EU’s environmental.
Some facts about Kosovo
In Kosovo state due to the latest government import taxes changes, now is the most favorite time for new importers, for almost every product.
As far as Finland has a great reputation in Albania & Kosovo and is well known for the quality and safety of the products produced in that country, Businesses in Finland should take this advantage of this opportunity as soon as possible. It is very likely that these companies will have their market share with their products in this market permanently.
So now is the time to enter in this market with your products. FIN-AL is here to assist you for the rest.
Finland
Location: Northern Europe
Capital City: Helsinki
Population: 5.4 million
Government: Parliamentary Democracy. Republic with President as Head of State.
Currency: Euro
Main Language: Finnish
Main Religions: Christianity (Evangelical Lutheran), Judaism, Islam.
Country profile
Finland is one of the world’s northernmost countries, bordered by Sweden and Russia. The capital Helsinki lies on the southern shores of the Gulf of Finland and is the most densely populated area, with 1.4 million inhabitants. The Finnish landscape is made up of thousands of lakes and islands and the geography and climate, with continuous daylight in summer and darkness in winter, creates a unique way of life for residents. The symbolic power of the Northern Lights (Aurora Borealis) and Midnight Sun is entrenched in Finnish folklore, tradition and culture. Despite a somewhat turbulent history under Russian influence, Finland is staunchly proud of its place in the European Union and is so far the only country in the Nordic group (Denmark, Sweden, Norway) to have adopted the Euro.
Culture
Finnish culture shares many similarities with other Nordic countries, with a commitment to equality, liberalism and the creation of a highly-functioning society. Finns enjoy excellent living standards and are highly educated, thanks to heavy investment in free education for all. Finns are proud of their rich cultural heritage and folklore but Finland is also an ultra-modern nation with a flair for digital technology (Nokia is a Finnish company – despite most people thinking it is Japanese) and a long held reputation for advancements in scientific research. Culturally, Finnish people are known for being taciturn and having a ‘less is more’ approach to life, where honesty and diligence are held in the utmost importance. One Finnish proverb aptly describes this attitude: “Take a man by his words and a bull by its horns.”
Popular activities
Finns love being outdoors and many leisure activities are dictated by the extreme weather conditions. Popular pursuits include skiing, hiking, ice hockey, swimming (in icy lakes) ice skating and fishing. However, a national obsession with the sauna tops the list of leisure activities. There are over three million saunas in Finland, and many homes have their own private equipment. The sauna is a major facet of Finnish identity and its health benefits are considered sacred (until recently, many women gave birth in the sauna). Newcomers to Finland should familiarise themselves with the rules governing sauna etiquette before stepping in.
Food and drink
Finnish cuisine is heavily influenced by neighbouring Sweden and Russia. Staples include rye bread – a favourite in Scandinavia – potatoes, meat and fish. Finland’s verdant pastures, coastline and lakes offer up some of the freshest produce in Europe and the national diet is considered to be very healthy.
Popular dishes include silakka (pickled, smoked or marinated herring), and a type of heavy meat stew called a karjalanpaisti. Dairy forms a large part of the Finnish diet and comprises many varieties of yoghurt and homegrown cheeses, like the blue-veined aurajuusto. An abundance of homegrown berries – such as lingonberries and cloudberries – are also used to make soups, jams, chutneys and juices.
Vodka is the national beverage of Finland and famous brands include Finlandia and Kossu. There is also a wide choice of mild Finnish lagers and beers to choose from. Strict laws govern the purchase of alcohol in Finland and it is very expensive – in a Helsinki bar, you will pay around €7 (£6.05) for a small beer.
Languages
The two official languages are Finnish (Suomi) and Swedish, with Russian the third most widely spoken. Finland also has a number of minority languages which include Sami (spoken by the 1,500 Sami peoples), Romani and Karelian. English is taught from preschool onwards and is widely spoken, particularly in academic settings – many Finnish degree courses are now taught entirely in English.
Weather
The Finnish climate is characterized by mild summers and intensely cold winters. Temperatures average around 13°C to 18°C in summer and can drop to as much as -30°C to -50°C in the coldest month of February. The extreme climate influences life and culture in Finland, with very heavy snowfall, continuous darkness in winter and continuous light in summer. New expats not used to these conditions may find them strange at first, however, the Finns take the weather in their stride and celebrate their unique relationship with the sun with numerous festivals, midnight BBQs and parties.
Safety and security
On the whole Finland is a safe country with very low crime rates, although alcohol-related crime is notably higher than in other Nordic countries. However, most international visitors to Finland will feel comfortable walking around cities, although it is advisable to stay with a group in the more raucous parts of Helsinki.