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AmCham expects Albania’s business confidence to improve in 2021

AmCham expects Albania’s business confidence to improve in 2021 Author: xiquinhosilva. Licence: Creative Commons, Attribution 2.0 Generic.

TIRANA (Albania), September 9 (SeeNews) - Albania’s business confidence index is expected to improve this year, after sliding to an all-time low in 2020, the American Chamber of Commerce (AmCham) in the country said.

The business confidence index dropped to 37.6 points last year - the lowest level since its inception in 2012, from 38.1 points in 2019, AmCham said in a statement on Wednesday, announcing the results of a survey conducted among 150 companies or 71% of all its members in Albania.

The Covid-19 pandemic impact and lower than expected progress with key indicators are main contributors in the deterioration of the index, the AmCham explained.

According to the survey, more than 71% of AmCham members perceive the business climate in Albania as unfavourable, 9% consider it to be positive, while 20% see it as neutral.

Four in five respondents stated that the performance of the Albanian economy has deteriorated during 2020, the AmCham said, adding that the same perception is observed in some of the core drivers of the economy including investment, demand for goods and services, exports and employment.

The overall tax level applied in Albania remains a concern for businesses and is considered a drag on competitiveness on a regional level, with 59% of respondents saying the tax level is unfavourable.

The AmCham business index shows that Albania still has great challenges to overcome in order to create a business climate that our members trust, the AmCham in Albania president Enio Jaço said in a separate statement after the publication of the survey.

“Reaching the lowest level since the start of the Index nine years ago proves the weight of the corrosive phenomena continues to hold the country hostage towards a faster progress,” Jaço said, adding that the AmCham expects to find dialogue and cooperating mechanisms with the new government and the parliament in tackling the challenges ahead.