The two measures, included in the 2027 state budget, are expected to provide additional financial support to pensioners, helping them meet everyday expenses and improve their financial security.

The government has earmarked around 24 billion leks in additional funding to implement the measures, Malaj said in a statement.

“With the 2027 budget, we are increasing support for pensioners to help them better meet their everyday needs and enjoy greater financial security. We have allocated around 24 billion leks in additional funding for two measures aimed at increasing their income,” he said.

The measures include doubling the monthly pension bonus, with amounts varying by pension category, effective Jan. 1, 2027, as well as bringing forward the annual pension indexation to April, three months earlier than usual.

“Doubling the monthly bonus according to pension categories from Jan. 1, 2027, and indexing pensions in April, three months earlier than usual,” Malaj said.

/m.q/r.e/u.sh/

Presenting the draft 2027 budget to the Conference of Chairpersons, Malaj highlighted the importance of agriculture to the economy and rural development.

“Agriculture remains an important sector for the economy and the development of rural areas,” he said.

The government aims to expand support schemes and increase the number of farmers receiving assistance, with about 43,660 beneficiaries projected for 2027, a figure expected to rise further over the medium term, Malaj said.

Key measures include continuing a 10% VAT compensation scheme for farmers, backed by annual funding of 3 billion leks, as well as additional funding for the National Scheme and improvements to irrigation and drainage infrastructure.

The draft budget provides an extra 100 million leks for the National Scheme and a further 400 million lek to upgrade irrigation and drainage systems, Malaj said.

/gj.m/j.p/r.e/u.sh/

Revenue from taxes, customs duties and social and health insurance contributions is projected to rise by 7.6% from the expected 2026 level, Malaj said as he presented the draft 2027 budget to the Conference of Chairpersons.

The revenue projections are based on expected economic performance, inflation, new fiscal measures and improvements in tax and customs administration, he said.

Budget revenue is forecast at around 843.1 billion leks, or 30.2% of GDP, in 2026, Malaj said.

The 2027 estimates for tax, customs and insurance contribution revenue take into account expected collections for 2026, historical revenue trends and macroeconomic forecasts, he said.

The projections also factor in economic growth and inflation, new fiscal and budgetary policies, the impact of previously introduced measures and additional revenue expected from the implementation of the Medium-Term Revenue Strategy, Malaj added.

“The 2027 revenue plan supports the Finance Ministry’s objectives of increasing revenue through improved tax and customs administration, financing key government reforms and budgetary investments, and keeping the budget deficit and public debt under control,” he said.

/gj.m/j.p/u.sh/

Presenting the draft law to the Conference of Chairpersons, Malaj said the economy grew by 3.6% year on year in the first half of 2026, supported by domestic demand, private consumption, investment and strong services exports, particularly tourism.

“Growth in the first half of 2026 was driven mainly by domestic demand, private consumption, investment and strong services exports, particularly tourism, which remains one of the main engines of our economy,” Malaj said.

Economic indicators in the third quarter point to continued steady growth, with business and consumer confidence improving and indicators remaining above historical averages, he said.

According to the Finance Minister, Albania’s economy is forecast to expand by 4.0% in real terms in 2026, in line with sustained economic activity and positive contributions from key sectors.

The unemployment rate stood at 8.3% in the second quarter of 2026, while labour force participation rose to 76.3%, reflecting an increase in employment opportunities and greater labour market participation, he said.

Foreign direct investment rose by 50.8% in the first half of the year to 1.1 billion euros, with investment increasingly directed towards higher value-added sectors, supporting growth, employment and productivity, Malaj said.

Inflation remains within the Bank of Albania’s 3% target, reflecting fluctuations in international commodity prices, the appreciation of the domestic currency and the effects of monetary and fiscal policies, he said.

Albania recorded a primary budget surplus of 0.3% of GDP in 2025, while public debt fell to 52.9% of GDP, its lowest level since 2008, Malaj said.

Standard & Poor’s reaffirmed Albania’s long-term sovereign credit rating at “BB” with a stable outlook, he added, citing the assessment as evidence of the resilience of the country’s financial policies.

The government plans to continue fiscal consolidation in 2027, targeting a budget deficit of 2.3% of GDP, a neutral primary balance and a further reduction in public debt to 52.4% of GDP, Malaj said.

“This means Albania is financing its development without putting stability at risk,” he said, adding that the government’s approach prioritised fiscal responsibility over populism.

/m.q/j.p/u.sh/

Malaj said spending on economic assistance, people with disabilities and their caregivers was 841 million leks higher than in the same period last year.

The government also provided 576 million lek more in support for people formerly subjected to political persecution, while spending on birth bonuses increased by 300 million leks, he said.

“So, in every area, there is more support. Behind every figure are people, families and children, and this is our goal: to collect more revenue,” Malaj said.

He said economic growth should be reflected in people’s everyday lives through greater support for families facing financial difficulties, people with disabilities and other groups most in need.

/e.xh/j.p/u.sh/

Malaj said Albania and Kosova were leading economic growth in the Western Balkans, with Albania’s expansion well above the EU average of 0.7% in the same period.

He attributed the performance to continued economic policies supporting investment, business activity, employment and consumption, and said he expected growth to accelerate in coming quarters, supported by tourism, investment and priority sectors.

Albania’s first-quarter growth compared with 3.69% in Montenegro, 3.20% in Serbia, 3.1% in North Macedonia and 1.9% in Bosnia and Herzegovina, according to the figures cited by Malaj.

The Western Balkans recorded average growth of 3.30% in the first quarter, putting Albania 0.41 percentage points above the regional average and 3.01 percentage points above the EU average.

“Albania and Kosova are leading the pace of growth in the region, while Albania is rapidly narrowing the gap with Europe,” Malaj said.

/e.xh/j.p/u.sh/

Malaj said the increase was aimed at strengthening the country’s capacity to respond to wildfires, floods, natural disasters and other emergencies.

Albania now has a larger budget and dedicated resources for emergency response, while municipalities have also received increased funding to intervene and manage emergencies in their areas, he said.

“Very strong fiscal results this year have also created the necessary budgetary space to respond to any unforeseen needs without affecting funding for other priorities,” Malaj said.

Finance Minister said stronger funding and expanded response capacity were intended to ensure the state was prepared to deal with emergencies, particularly during periods of heightened wildfire and natural disaster risks.

“Albania is financially better prepared than ever to deal with emergencies,” Malaj said.

/e.xh/a.f/r.e/u.sh/

Speaking at a press conference after a regular cabinet meeting, Finance Minister Petrit Malaj said the reforms amend the laws on payment services, payment systems and banks, strengthening the legal framework while improving the efficiency and security of the financial system.

The changes are also part of Albania’s efforts to align its legislation with the EU acquis under Chapter 4 of the accession negotiations, covering the free movement of capital.

Malaj said the reforms would lower the cost of financial transactions, strengthen consumer protection, enhance the security of the financial system and promote greater competition and innovation in the banking and payments market.

“A stronger financial system also supports a stronger economy,” he said.

/gj.m/ /a.g/u.sh/

Takacs was accompanied by outgoing EBRD country head Ekaterina Solovova and other representatives of the bank.

The meeting underscored the longstanding partnership between the Albanian government and the EBRD, which has played a key role in financing projects supporting the country’s economic development.

Malaj thanked Solovova for her contribution during her tenure in Albania and welcomed Takacs, expressing confidence that cooperation between Albania and the EBRD would continue to deepen.

Finance Minister highlighted the EBRD’s role in financing projects with a direct impact on Albania’s economic and infrastructure development, stressing the importance of expanding cooperation in priority sectors in line with the country’s sustainable development goals and EU integration agenda.

Takacs reaffirmed the EBRD’s commitment to supporting Albania through investments that promote economic growth, infrastructure modernisation, the green transition and private sector development.

The meeting also reviewed the implementation of ongoing projects and explored opportunities to expand cooperation through new initiatives of mutual interest.

Since beginning operations in Albania in 1992, the EBRD has invested more than 1.1 billion eurosin projects across transport, energy, financial services and other priority sectors, contributing to the country’s infrastructure modernisation and sustainable development.

/m.m/r.e/u.sh/

In a social media post, Malaj said the new framework envisages steady economic growth, high levels of public investment and a gradual reduction in public debt.

“The Albanian economy is expected to maintain strong growth rates in the coming years, supported by investment, domestic consumption, tourism and service exports,” Malaj said.

He added that fiscal policy would continue to focus on responsibility and stability, strengthening confidence and creating greater opportunities for citizens and businesses.

Albania’s economy recorded steady growth between 2023 and 2025, with GDP growth reaching 4% in both 2023 and 2024 and 3.8% in 2025.

Growth is forecast at 4% in 2026, with average annual growth of around 3.9% expected over the medium term. Projections point to expansion of 3.9%, 4.1% and 3.9% respectively in 2027, 2028 and 2029.

According to the framework, domestic demand will remain the main driver of growth, supported by higher consumption and investment. Private consumption is expected to benefit from improvements in the labour market and stronger consumer confidence, while private investment will be supported by a better business climate, easier financing conditions and broader economic activity.

Albania’s exports are projected to grow by an average of 4.6% annually during 2027-2029, with service exports, particularly tourism, continuing to play a key role in the economy.

Inflation is expected to return to the 3% target in 2026 and remain close to that level over the medium term.

On the fiscal side, the government aims to continue consolidating public finances. The budget deficit is projected to fall from 2.3% of GDP in 2026 to 1.6% in 2027, 1.3% in 2028 and 0.9% in 2029. The primary balance is expected to remain positive, reaching 0.8% of GDP in 2027, 1% in 2028 and 1.4% in 2029.

Gross public debt is forecast to decline to around 50.2% of GDP by the end of 2029, from 52.9% in 2025, further strengthening the long-term sustainability of public finances.

The 2027-2029 Macroeconomic and Fiscal Framework represents another step towards reinforcing Albania’s economic resilience, maintaining macroeconomic stability and aligning the country more closely with EU standards as part of the strategic “Albania 2030” objective.

/k.s/r.e/u.sh/