Albanian capital outflows abroad (2015–2025), an increasing trend and implications for the economy

During the decade 2015–2025, the Albanian economy has entered a new phase of connection with international markets, where one of the most significant developments is the increase in the outflow of Albanian capital abroad.
According to the ALTAX Observatory analysis on this phenomenon “Outflows of Albanian capital abroad 2015-2025”, Albanian investments abroad are no longer a coincidence or sporadic behavior, but a consolidated trend that reflects structural changes in the way Albanian businesses are positioning themselves in the economy.

The data for the period show a continuous increase in Albanian direct investments abroad, with a noticeable acceleration in recent years.
In 2025, these investments reached around 241 million euros, marking a significant increase compared to previous years. In the medium term, especially from 2017 to 2024, Albanian capital abroad has multiplied, signaling a clear expansion of economic activity beyond national borders.

This development is closely linked to several factors.
First, Albanian businesses are looking for larger and more stable markets to ensure long-term growth.
Second, risk diversification has become an increasingly important strategy, especially in a domestic economic environment that is often perceived as limited in expansion opportunities. Third, higher returns in certain sectors in the region and in some European markets have encouraged the shift of capital towards investments abroad.

The main destinations of these flows are the countries of the region, especially Kosovo and North Macedonia, as well as several European markets with strong economic and migratory links with Albania. Sectorally, investments are mainly focused on construction, real estate, trade, services and, to a more limited extent, in the energy sector.

Despite this increasing trend of capital outflows, the balance of foreign direct investment in Albania still remains positive in favor of foreign capital inflows.
However, the analysis suggests that the gap between inflows and outflows is gradually narrowing, reflecting an economy in transition, where domestic capital is increasingly gaining the ability to internationalize.

The phenomenon of capital outflow should be understood at two levels.
On the one hand, it indicates a maturation of Albanian business, which is moving from the domestic market phase towards a phase of regional and international expansion. This implies an increase in the managerial, financial and strategic capacities of Albanian enterprises.
On the other hand, this development also raises several challenges for the domestic economy, especially in relation to the potential of domestic investments, job creation and the development of productive sectors in the national territory.

In this sense, the outflow of Albanian capital abroad is not only an indicator of economic integration, but also a signal for the need to improve the investment climate within the country.
The main challenge for economic policymaking remains creating the conditions for a greater share of this capital to be reinvested in the domestic economy, while maintaining a healthy balance between international expansion and domestic economic development.

The full analysis is in Albanian and English, in the same bilingual document.