No longer a free arm of labor, the increase in wages may inhibit foreign investment in Albania

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In the race to absorb international investment, Albania’s greatest advantage over its rivals is its free labor force. However, the almost forced increase in wages, combined with a still hostile business environment, may stymie the arrival of new investments, which the country desperately needs now more than ever.
“Unexpected wage increases translate into more expenses and lower profits on the business side.” As a result, the cost of labor may make Albania less appealing to them.”

As a result, the new conditions for Gjin Gjoka from the Chamber of Diaspora eliminate the need for government participation to provide other facilities to attract immigrants.

“With the loss of the free labor arm’s advantage, the government must provide fiscal and tax relief.” Lowering taxes or other strategies that can be implemented can entice immigrants while keeping Albania in mind.”

According to the Global Opportunities Index 2023, Albania is the least appealing country in the Western Balkans for foreign investors, trailing only Bosnia and Herzegovina. North Macedonia is the region’s top performer, placing 52nd, followed by Montenegro and Serbia.