ALB · snapshot 2026-08-09
Albania
MediumOverall risk score
42.6
Percentile of scored universe
43th
Data coverage
97%
vs Australia (16.1)
+26.5
Category breakdown
Political Stability & Governance
Medium6 indicators · 100% coverage
Economic Resilience
Medium7 indicators · 100% coverage
Financial & Currency Risk
Medium5 indicators · 100% coverage
Business Environment
Very High3 indicators · 75% coverage
Security & Crime
Medium4 indicators · 100% coverage
Climate & Social Compliance
Medium4 indicators · 100% coverage
Technology & Digital
Medium4 indicators · 100% coverage
Cultural Distance
Medium9 indicators · 100% coverage · not in overall score
Key risks and considerations
Albania rates Medium for market entry — an overall risk score of 42.6, less risky than 57% of rated economies and 27 points riskier than Australia.
The main risk drivers are no double-tax agreement with Australia, no investment-treaty protection with Australia, high modern-slavery prevalence (11.8 per 1,000) and weak logistics performance.
Relative strengths: FX reserves, current account, currency stability all rate Low, the least-risky rating band.
Possible mitigations
- Withholding tax. No double-tax agreement with Australia: model withholding tax on dividends, interest, and royalties into the business case — it can decide the entity-vs-export question.
- Modern slavery compliance. Elevated modern-slavery risk: apply enhanced supply-chain due diligence and document it — Australian Modern Slavery Act reporting will expect exactly this analysis.
- Cultural bridging. Large cultural distance: invest in local partners, bilingual advisers, and longer relationship-building timelines — assume negotiation and management norms differ materially.
Generated automatically from this snapshot’s indicator data — a starting point for analysis, not advice.
Indicators
| Indicator | Value | Risk score | Rating | Australia | Data source year | Source |
|---|---|---|---|---|---|---|
| Political Stability & Governance | ||||||
| Voice & accountability (WGI) | 56.6 | 49.0 | Medium | |||
| Government effectiveness (WGI) | 57.4 | 37.3 | Medium | |||
| Regulatory quality (WGI) | 57.0 | 38.3 | Medium | |||
| Rule of law (WGI) | 54.9 | 49.5 | Medium | |||
| Control of corruption (WGI) | 39.3 | 61.6 | High | |||
| Political stability & absence of violence/terrorism (WGI PV) | 66.2 | 49.5 | Medium | |||
| Economic Resilience | ||||||
| GDP growth (3-yr average, %) | 4.0% (3-yr avg) | 45.0 | Medium | |||
| Growth volatility (10-yr std dev, pp) | ±3.0 pp | 41.1 | Medium | |||
| Government net debt (% of GDP) | 45.5 | 35.0 | Medium | |||
| Inflation (CPI %, vs income-group target) | 2.1 | 35.0 | Medium | |||
| Current account (3-yr average, % of GDP) | -1.5% (3-yr avg) | 15.0 | Low | |||
| FX reserves (months of import cover) | 7.2 months | 10.0 | Low | |||
| GDP per capita (PPP, current intl $) | $28,221 | 42.5 | Medium | |||
| Financial & Currency Risk | ||||||
| Capital-account openness (Chinn-Ito KAOPEN) | 0.42 | 60.0 | High | |||
| Currency stability (regime-aware classification) | Floating — low volatility (<8%) | 15.0 | Low | |||
| Sovereign credit risk (OECD country risk classification) | Category 4 / 7 | 45.0 | Medium | |||
| FATF listing (grey / black list status) | Not listed | 0.0 | Low | |||
| Double-tax agreement with Australia | None in force | 100.0 | Very High | |||
| Business Environment | ||||||
| FDI regulatory restrictiveness (OECD FDIRRI) | 0.03 | 39.4 | Medium | |||
| Logistics performance (World Bank LPI) | 2.5 | 75.4 | Very High | |||
| Business readiness (World Bank B-READY pillar average) | — | — | Insufficient data | |||
| Investment protection with Australia in force (BIT or FTA investment chapter) | None in force | 100.0 | Very High | |||
| Security & Crime | ||||||
| Armed-conflict intensity (battle deaths per 100k, 5-yr) | 0.0 | 29.7 | Medium | |||
| Intentional homicide rate (per 100k) | 1.4 | 37.6 | Medium | |||
| Organised crime pervasiveness (GI-TOC criminality score) | 5.2 | 53.4 | High | |||
| DFAT Smartraveller advisory level | Level 2 — Exercise a high degree of caution | 40.0 | Medium | |||
| Climate & Social Compliance | ||||||
| Physical climate vulnerability (ND-GAIN vulnerability) | 0.416 | 36.6 | Medium | |||
| Disaster risk (INFORM Risk Index) | 2.9 | 33.2 | Medium | |||
| Modern-slavery prevalence (per 1,000) | 11.8 | 90.9 | Very High | |||
| Modern-slavery vulnerability score | 39.5 | 33.4 | Medium | |||
| Technology & Digital | ||||||
| E-government development (UN EGDI) | 0.8 | 31.9 | Medium | |||
| Internet users (% of population) | 85.9 | 42.2 | Medium | |||
| Cybercrime origination (World Cybercrime Index) | 0.0 | 10.0 | Low | |||
| Secure internet servers (per million people) | 1512.7 | 44.0 | Medium | |||
Per-indicator ratings are quartile bands of the 0–100 risk score. The Australia column shows the same indicator’s raw value for the Australian baseline in this snapshot.
Cultural distance
GLOBE 2004 societal practices · rated on distance from Australia · not in the overall score
Context — not scored
Unemployment
10.9%
Displayed, never scored: ambiguous for an entrant and unreliable where informal employment dominates. (2025, ILO modelled)
Trade agreement
No Australian FTA in force
Market access is decision-relevant but a benefit, not a risk — kept out of the rating.
Regional advisories
No higher regional advisory levels
DFAT Smartraveller sub-national advice where it exceeds the overall level.
Compare with
A score means little on its own. These economies scored closest to Albania in this snapshot, which is the fastest way to see whether the rating is telling you something specific or something regional.