>> Albania, with a surface of 28.748 km² and a population of about 3,58 Mio., ended a 46 year lasting period of communistic dictation and isolation in 1991. Since the first free elections held in this year, the country has made a remarkable development on it's way towards a democratic state, although there are still a lot of deficiencies.

Due to the long lasting isolation in political and economic means, Albania became Europe's poorhouse and is now slowly on the way to recover. Compared to the bordering states the country lies back economically, but offers very interesting opportunities, for example very low labor costs.  Although the country is still one of the poorest in Europe, the Albanian economy shows continuous growth. In 2005 the Albanian economy grew by 5,5% and the inflation rate was 2,4%. This tendency is based on an ongoing activity within the construction industry but also in the fields of small trade and services. Export is only to a small extend the driving force of economic growth in Albania. Much more the local construction business, the tremendous backlog demand, large foreign investments and of course also the increased consumer needs count for a positive business development.

Since 1997 definite improvements in the development of a free market economy have been achieved. Supported by a reform program developed together with the International Monetary Fund (IMF) and the World Bank (WB), prices have been liberalized, small enterprises were privatized in all sectors and the currency was made convertible. The government practices a reluctant fiscal policy and efforts are being made to attract foreign investors and to improve the investment climate. Austria is currently the most important foreign direct investor in Albania.