Albania needs foreign investment to boost growth: World Bank

The World Bank believes that Albania needs to attract foreign investment to boost its economic growth, and that this is the only way to achieve it, the Albanian Daily News reported Wednesday.

"Albania needs to be seen as an attractive investment destination for foreign investors and an equally attractive business environment for the private sector," World Bank representative Tahseen Sayed told a conference on Tuesday in Tirana.

As Albania's economy stabilizes, a key challenge is what it will take to accelerate growth and job creation, Sayed told the conference on business climate and investment attractiveness, which brought together business representatives and officials in Albania's capital.

Sayed listed three priority areas for Albania to focus on in this regard -- macro-fiscal stabilization, better integration into the global economy, better investment attraction and a healthy business climate.

"Albania needs to grow at an average of above 4.5 percent per annum in order to catch up with the average living standards of the EU (European Union) within several decades," Sayed was quoted as saying by the newspaper.

"It needs to integrate into the global economy more successfully in order to grow at these higher levels and create more jobs. This also requires a structural shift toward increased productivity among firms and a boost in the external competitiveness of the economy," she said.

A single investment regime, applicable to all investors and aligned with international good practices, will help attract and retain foreign investments and spur local business development, she added.

International Monetary Fund representative Jens Reinke also said that foreign investment remains low in Albania due to the lackluster business climate.

Reinke urged the country to carry out judicial reforms to guarantee security for investors, create a stable and credible taxation system, and improve its fight against corruption. Endi