The pandemic year 2020 proved to be difficult for businesses, but especially for foreign activities, which found it impossible to continue working. 

According to INSTAT data, last year 408 foreign enterprises with mixed domestic and foreign ownership closed their activities, causing the number of foreign enterprises to decrease by 6.3 percent compared to 2019. Closed enterprises constitute almost 7% of foreign and joint ventures operating in the country. 

The decline in businesses from major trading partners (Italy, Greece, Kosovo, Turkey, Germany, Macedonia, Israel, USA) was stronger by about 16% but was somewhat offset by the opening of businesses from other countries, which grew with 23.5% in 2020. 

The largest bankruptcies were seen in Italian companies in Albania. Italy is the country with the largest number of businesses in our country with about 2553 such, with a decrease of 15% compared to 2019. While in percentage the largest decrease was businesses from Israel, with 59% less than in 2019 or with 99 businesses closed. Enterprises from this country operate mainly in the call center sector and in agriculture. 

During the pandemic year, a series of businesses were closed by the country's major trading partners. 58 businesses were closed in 2020. Total businesses from Kosovo decreased by 13% during the pandemic year, companies from Greece decreased by 15%, those from Macedonia by 22%, and Turkey by 7%. 

But as businesses from our trading partners declined, businesses grew with which Albania has not developed much economic cooperation. Businesses from other countries in our country reached 1903 entities with an increase of 23 percent compared to 2019. 

Supply chains were damaged by pandemic restrictions, so many countries that previously did not have trade and economic relations with our country established new connections during the pandemic by opening businesses as well. In contrast, businesses from partner countries did not survive the pandemic and economic crisis. 

According to INSTAT, enterprises with foreign owners or co-owners occupy 3.6% of active enterprises, compared to 4.0% of active enterprises in 2019, and employ 12.4% of total employees. 

Enterprises from European Union countries represent 62.2% of foreign and joint ventures. Owners or co-owners of Italian and Greek origin represent 77.8% of the total foreign and joint ventures. Foreign and joint ventures are mainly concentrated in the municipalities of Tirana and Durrës, respectively 64.9% and 12.1 %.

(Source: Monitor)