A total of 6,396 all-electric vehicles were registered for the first time between January and July, up 126% from the same period a year earlier, the directorate said.

Electric vehicles accounted for 40.5% of all new zero-mileage vehicles registered in the first seven months, an increase of 68% compared with January-July 2025.

The figures point to a growing shift towards cleaner vehicle technologies and a gradual transformation of Albania’s vehicle fleet, DPSHTRR said.

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Marking World Rural Development Day, Salla reaffirmed the government’s commitment to supporting farmers and boosting the rural economy through policies aimed at increasing domestic production, expanding investment, improving access to finance and creating new opportunities in rural areas.

Agriculture Minister said the government’s 2026 support package includes 5.2 billion leks for the National Agricultural Support Scheme and 1.5 billion leks in sovereign guarantees to facilitate lending to farmers and agribusinesses.

The package also provides 4 billion leks for irrigation and drainage infrastructure, with the aim of improving the sustainability of agricultural production and protecting farmland.

In addition, a 10% compensation scheme for agricultural product sales came into effect on July 1, providing direct support to farmers while encouraging greater formalisation of the agricultural sector.

Salla said the measures are intended to strengthen the rural economy and improve the long-term resilience and competitiveness of Albania’s agricultural sector.

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Speaking after a cabinet meeting, Ibrahimaj said the programme would be available to businesses across Albania through the banking system starting this month, with loans backed by the state guarantee carrying an average interest rate of around 2%.

“The sovereign guarantee is an extremely important financial instrument at this stage of Albania’s economic development. Businesses need greater access to financing to increase investment, productivity and competitiveness,” she said.

Ibrahimaj said the measure is intended to improve access to credit and strengthen the capacity of Albanian businesses to align with European Union standards.

She also said the cabinet approved three draft laws related to Chapter 7 of Albania’s EU accession negotiations, covering industrial property rights, including industrial designs, geographical indications and copyright.

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The agreement, ratified with the votes of the ruling majority, provides for a 40 million euro loan to support the plant’s electromechanical rehabilitation, aimed at improving the safety and efficiency of electricity generation from renewable sources.

The planned works will upgrade equipment technology, increase the reliability of the facility’s operations and extend the plant’s operational lifespan by at least 30 years.

The new financing adds to previous assistance for the project and will fund additional rehabilitation measures identified during technical assessments conducted by international experts.

The rehabilitation project is expected to be implemented by Albanian Power Corporation (KESH), with works scheduled for completion in July 2030.

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Consumer prices increased by 0.5% compared with January 2026, according to the country’s statistics office.

The largest annual price increase was recorded in the category “Housing, water, electricity, gas and other fuels,” which rose by 5.3%. This was followed by “Insurance and financial services” at 4.3%, “Recreation, sports and culture” at 4.2%, and “Restaurants and accommodation services” at 2.4%.

Other increases included “Personal care and miscellaneous goods and services” at 2.3%, while both “Alcoholic beverages and tobacco” and “Furniture, household equipment and routine household maintenance” rose by 2.2%. “Education services” increased by 1.9%, while “Food and non-alcoholic beverages” rose by 1.7%.

In terms of contributions to overall inflation, the “Housing, water, electricity, gas and other fuels” group had the largest impact, adding 1.06 percentage points to the annual rate, followed by “Food and non-alcoholic beverages,” which contributed 0.60 percentage points.

Smaller contributions came from “Furniture and household maintenance” (0.15 percentage points), “Restaurants and accommodation services” (0.13), and “Alcoholic beverages and tobacco” (0.11), while several other categories had more limited effects on the overall inflation rate, INSTAT said.

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The Europe’s single currency euro weakened slightly against the lek, trading at 96.37 leks by the end of the week, down from 96.43 leks at the start of the week, according to figures published by the Bank of Albania.

The British pound also lost ground, weakening to 110.35 leks on Friday from 110.91 on Monday.

By contrast, the U.S. dollar gained against the lek during the week, rising to 81.89 leks on Friday from 81.28 leks on Monday, an increase of 0.61 leks.

The Swiss franc posted a gradual decline over the same period, trading at 105.51 leks on Friday, down from 105.61 leks at the start of the week.

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The Bank of Albania said the average interest rate on the 12-month bills remained subdued, reflecting favourable liquidity conditions in the banking system.

At the final auction of 2025, demand reached 6.65 billion lek, exceeding the amount sold, according to central bank data.

The weighted average yield stood at 2.44%, unchanged from the previous auction. The central bank said the outcome reflected ample banking sector liquidity, lower government financing needs in the domestic market and reduced risk premiums linked to a decline in public debt and an improved sovereign credit profile.

By comparison, yields on 12-month treasury bills stood at 2.76% at the end of 2024.

Lower T-bill yields also imply cheaper borrowing costs in the local currency, supporting bank lending, while allowing the government to finance domestic debt at a lower cost.

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Deposits rose by 116 billion leks, or 8.7%, year-on-year. Domestic currency deposits increased by 85 billion leks, while euro-denominated deposits rose by 615 million euros.

The central bank said the positive trend reflects confidence among households and businesses in the banking system, as well as stable macroeconomic conditions that supported savings throughout the year.

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Presenting the latest economic indicators at a news conference, Ibrahimaj cited data from statistics office INSTAT showing that third-quarter growth was in line with government forecasts and well above the European Union average of 1.6% and the Western Balkans average of 3.4%.

Citing INSTAT figures, Economy Minister said Albania’s Gross Domestic Product (GDP) expanded 3.75% in the third quarter.

For the first nine months of 2025, economic growth reached 3.73%, while full-year growth is expected to meet the government’s 3.9% target,” she said.

An analysis by sector shows that growth was largely supported by services and public and private investment. Construction expanded by 4.75%, while trade, transport and accommodation – sectors closely linked to tourism – grew by 2.62%.

The information and communications sector recorded strong growth of 10.4%, while real estate activities increased by 10.55%. Public administration, education and healthcare together contributed 1.68 percentage points to overall growth, reflecting higher investment and wage increases.

By contrast, agriculture, forestry and fishing contracted by 1.73%, while overall industrial activity slowed by 4.75%, mainly due to declines in extractive industries and textile manufacturing.

Ibrahimaj described tourism as the main engine of economic growth.

“Tourism remains one of the key drivers of Albania’s economy,” she said, noting that foreign arrivals reached about 12 million in the first 11 months of 2025, with tourists staying an average of nine days. Hotels and restaurants posted growth of 16% in nominal terms and 3.43% in real terms.

Over the first nine months of the year, services generated 6.5 billion euros in revenue, up 14%, while travel services alone brought in 4.4 billion euros, she said.

Household consumption increased by 1.25%, reflecting stable conditions and inflation remaining below the Bank of Albania’s target.

Ibrahimaj also pointed to an improvement in Albania’s external position, with exports rising 12.55% and imports up 5.47%, resulting in a third-quarter current account surplus of around 658 million euros. On a nine-month basis, the balance also remained in surplus, supported largely by strong exports of services and tourism, despite a widening trade deficit in goods due to higher energy imports and lower metal exports.

Investment rose 4.78% in the third quarter, while foreign direct investment reached 1.2 billion euros in the first nine months of 2025, up 51 million euros from a year earlier. Real estate accounted for 31% of inflows, followed by financial intermediation at 16%, as well as hydrocarbons, energy and communications.

Unemployment fell to 8.1%, while the average gross monthly wage rose 7.25% year on year to 83,300 lek, she said.

Ibrahimaj said the data point to a resilient economy with strong macroeconomic fundamentals and a positive outlook for 2026, adding that a recent International Monetary Fund report also confirmed Albania’s stable growth, while warning that global uncertainty remains the main risk to the region.

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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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