TIRANA, Sept 26 /ATA/ – The European Bank for Reconstruction and Development (EBRD) has maintained its economic growth forecast for Albania at 3.5% for both 2025 and 2026, according to its latest Regional Economic Prospects report.
The EBRD said Albania’s economy expanded by 4% in 2024, driven primarily by growth in the services sector – especially tourism – as well as construction. In contrast, industrial output and agriculture saw a decline.
The report notes that private consumption and public investment were the main contributors to growth. However, the country’s exports fell, weighed down by the appreciation of the Albanian lek and weak demand from European trading partners, leading to a widening current account deficit.
Inflation eased significantly, falling to 2.2% in 2024, down from 4.8% the previous year. This enabled the Bank of Albania to lower its policy rate from 3.25% to 2.75% during the year.
The report also highlights that Albania’s financial sector remained stable, with an increase in lending activity.
Positive factors that could accelerate future growth include continued structural reforms, Albania’s commitment to EU integration, and the potential for increased EU funding.
However, the EBRD warns of several downside risks, such as weak eurozone demand, a possible decline in remittances, and a slowdown in tourism following record levels over the past two years.
Additionally, dry weather conditions could impact domestic energy production and increase reliance on energy imports, though the report notes this risk may be offset by growth in renewable energy output.
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