Industry contracted during the January-March period, with net sales volume falling 3.1% year-on-year, production declining 4.9% and employment down 2.9%. Despite the slowdown, the sector’s wages increased by 7.5%.

The electricity, gas and steam supply sector recorded strong growth across all key indicators. Net sales volume rose 17.6%, while production surged 45% compared with the same period a year earlier.

Employment in the sector increased by 2.1%, while the wage bill rose 13.1%.

The water supply, sewerage and waste management sector also expanded, with net sales volume increasing 15.1% and production rising 5.6%. Employment edged up 0.3%, while the wage bill climbed 18.5%.

Construction maintained its upward momentum in the first quarter, with net sales volume rising 8.6%, production increasing 7.2% and employment growing 5.6%.

The sector’s wage bill rose 22.4% from a year earlier, according to INSTAT.

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Rama shared images on social media from the construction site, saying the remaining works will complete last section and finalise the strategic infrastructure project.

With a total length of around 60 kilometres, the road will significantly improve connectivity between the UNESCO-listed cities of Berat and Gjirokastër, he said.

Rama described the project as more than an infrastructure link, saying it would strengthen cultural tourism routes in southern Albania and reduce travel times between key destinations.

Once completed, the road is expected to improve access to Berat for visitors arriving from Gjirokastër or Greece, and boost tourism, agritourism and economic activity in surrounding rural areas.

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The remarks came during an interpellation requested by Socialist Party MP Erion Braçe after a recent fire at a Tirana residential and commercial complex sparked public safety concerns.

Minister Karakaçi responded that these concerns directly impact construction safety. He stated that while Albania has robust regulatory mechanisms in place, the legal framework still needs improvement.

Karakaçi noted that the current legal basis—the 2004 Construction Products Law—mandates strict criteria for materials, such as mechanical resistance, fire safety, environmental protection, and energy efficiency. Citing recent events, he stressed the need for tighter controls and EU alignment, announcing a newly drafted bill to regulate the trade of construction products.

He noted that the draft law introduces a modern, standardized system for evaluating and declaring construction product performance in accordance with EU regulations. To further enhance safety, the legislation establishes specialized bodies for certification, technical assessment and market oversight.

Minister Karakaçi highlighted the law on the control and discipline of construction works, which clearly outlines the responsibilities of designers, contractors, supervisors and inspectors. To ensure structural integrity, the legislation mandates that imported materials hold quality certificates from accredited laboratories, while domestic materials require certification from licensed institutions.

The minister emphasized that enhancing building safety and tightening oversight are top government priorities to protect the public interest. /j.p/p.s./

Minister of Infrastructure and Energy Enea Karakaci said during an inspection visit on Monday that the road is a key entry point to Shkodër and an important link with neighbouring Montenegro.

The project includes road widening, upgrades to category D standards, and the construction of a parallel bridge to ease traffic congestion.

“We are expanding the road and improving its standards, as well as building a parallel bridge to facilitate circulation,” Karakaci said.

The Head of the Albanian Road Authority, Ami Kozeli, said physical works have reached 65% completion, including road widening and sidewalk upgrades, with works ongoing without disrupting local businesses.

A revised design also includes a new roundabout near Bahçallëk Bridge to improve traffic flow and access to nearby neighbourhoods.

Authorities said asphalt works in the area are expected to be completed by May 7, with a traffic management plan to be implemented ahead of the summer season.

The new bridge, currently under construction, is expected to further ease traffic towards Tirana once completed.

Officials have called for accelerated works to manage increased seasonal traffic, while expropriation procedures continue to clear the remaining sections of the corridor.

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Speaking at a meeting with a construction business attended by Prime Minister Edi Rama, Ibrahimaj said the sector has been a key contributor over the past decade, with a broad impact across the wider economy.

She described construction as having a “multiplier effect”, with investments supporting continued economic expansion and contributing directly to higher wages.

According to Ibrahimaj, ongoing projects are expected to generate around 14 million euros in local tax revenues, alongside additional income from related economic activity.

She also cited the example of the host company, which currently employs about 200 people and works with 50 contractors, with plans to expand its workforce to around 1,000 within a year. Wages at the firm range from a minimum of 900 euros to an average of 1,700 euros, with top salaries reaching 3,600 euros, significantly above the national average.

Ibrahimaj said such projects, developed to high urban standards, serve as models for future investment, adding that improving worker welfare and raising wages remain central to government policy, while also boosting social security contributions.

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Prime Minister Edi Rama on Friday shared images from the construction site, saying the school would become part of a growing network of model schools in Kamza.

“The construction of the ‘Sulejman Elezi’ high school in Laknas continues and it will accommodate more than 800 students in dignified conditions,” Rama said.

The school is designed as a community facility, featuring common areas as well as sports, cultural and artistic spaces intended to serve both students and residents of the surrounding area.

At the start of the 2025–2026 school year, 30 new and rehabilitated schools opened across the country, equipped with 340 smart laboratories.

A further 42 school construction projects are currently under way nationwide and are scheduled for completion under the 2026 state budget.

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Within the framework of this plan, the Tax Administration announced today that it has gathered data obtained from various sources.

These sources are used for in-depth risk analysis, with the aim of identifying discrepancies, deviations from reference indicators and behaviors that signal tax evasion.

The Tax Administration called on taxpayers in this sector to correctly and timely fulfill their legal obligations, especially for the declaration of employees, the real declaration of salaries in accordance with the profession and labor market conditions, as well as the issuance of fiscalized invoices for each sale or transaction, including prepayments. /gj.m/j.p/p.s./

Part of a broader series of investments along the western shore of Lake Shkodër, the road is also expected to position the town as a key regional hub.

Prime Minister Edi Rama shared images of the road on Saturday, which is in its final phase.

In addition to improving local communities’ access to infrastructure, the road is expected to boost tourism in the area.

The route stretches a total of 6.5 kilometers, with the first 4.5 km consisting of the expansion of the existing lakeside road.

Together with the bypass in the center of Zogaj village, the Shirokë panoramic road forms a crucial segment for easing traffic, transforming Zogaj into an important tourism and economic corridor.

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The programme focuses on boosting employment, ensuring medium- and long-term fiscal sustainability and strengthening macroeconomic stability. It also includes a set of structural reforms linked to the EU’s “New Growth Plan”, designed to raise Albania’s potential growth and accelerate economic convergence with EU standards.

Finance Ministry said the economy has shown strong resilience to shocks – including the earthquake, the COVID-19 pandemic and geopolitical tensions – while maintaining key financial and economic fundamentals.

Economic growth averaged 4.3% in 2022–2024 and is projected at 3.9% for 2025, driven by services, tourism, construction, private consumption and investment.

For 2026 – 2028, GDP is forecast to grow by an average of 4%, supported mainly by domestic demand, investment and services exports. Final consumption is expected to rise by 2.5% a year; investment by 6.6%; exports of goods and services by 4.7%; and imports by 3.2%, yielding a slightly positive contribution from net external demand.

On the supply side, industry is expected to expand by 2.7% annually, construction by 3.2%, services by 5.4% and agriculture by 0.2%.

Fiscal policy will continue to target a gradual reduction of public debt and a positive primary balance, projected to reach 1% of GDP by 2028. Public debt is forecast to fall from 54.1% of GDP in 2025 to 46.4% by 2031.

Capital spending will remain above 6% of GDP over the medium term, while the budget deficit is targeted at 1.7%, ensuring a current account surplus of around 4.6%.

The private sector grew by 9.5% over the past year, improving household purchasing power.

Employment is expected to rise modestly by 0.1% per year during 2026 – 2028, with the unemployment rate falling gradually to 8.5% by 2028. Labour productivity is projected to improve slightly, with services contributing the most to job creation.

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The group that had the greatest impact in the cost increase was that of salaries which increased by 6.6%. Also, machinery expenditures increased by 2.4% and transport expenditures by 1.7 %.

On the other hand, material prices fell by 0.6%, due to lower prices of construction materials, electrical and communication materials, as well as hydro-sanitary and ventilation materials. /j.p/p.s./