TIRANA, October 13/ATA/ Albanian economy is expected to grow at a steady pace and close to its potential in the medium term.
During presentation of the Bank’s annual report for 2024 to the Parliament’s Committee on Economy, Employment and Finance, Governor of the Bank of Albania Gent Sejko emphasized that sustainable economic growth will create premises for improving the labor market, increasing wages and improving the well-being of citizens.
According to the governor, the volume of economic activity increased by 4% during 2024, thanks to the expansion of family consumption, the increase in private investments and tourism revenues, which have maintained the positive pace of development in the first half of 2025, with an increase of 3.6%.
In parallel with the positive developments, Sejko informed that inflation has decreased, dropping from 4.8% in 2023 to around 2.2% for 2024 and the first quarters of 2025. Total exports reached 9.1 billion euros in 2024, with an increase of 11% compared to the previous year, driven mainly by tourism revenues that reached 5 billion euros. Remittances and foreign direct investments have also continued to grow during the first half of 2025, reaching 1 billion euros and 1.6 billion euros, respectively.
Governor also noted improvement in the country’s external position, with external debt falling to 40.5% of GDP in the second quarter of 2025, from 46.2% at the end of 2023.
“We undertook two cuts in the base interest rate, lowering it from 3.25% at the beginning of the year to 2.75% at the end of 2024 and to 2.5% in July 2025,” Sejko stated.
Another important achievement is the launch of SEPA schemes. According to Sejko, this is expected to bring significant savings to the Albanian economy. Governor Sejko underlined that the outlook for economic developments remains positive, with the expectation that sustainable growth will bring improvements in employment, wages and welfare, as well as low inflation and consolidation of macroeconomic balances.
However, he warned of potential risks, citing geopolitical tensions and structural challenges that require further reforms in areas such as education, health, infrastructure, the business climate and strategic investments.
According to him, European integration process remains an important roadmap for the reform agenda, offering a historic opportunity for increased foreign investment and the sustainable development of the Albanian economy. /a.f/r.e/p.s./
