In its Global Economic Prospects report, WB also projects that Albania’s economy will expand by 3.5% in 2027, reflecting macroeconomic stability and continued positive performance across key sectors of the economy.

According to the international financial institution, average economic growth in the Western Balkans is projected at 3.1% in 2026, following a more moderate performance in 2025. Against this backdrop, Albania ranks among the fastest-growing economies in the region.

The report said Kosovo is expected to record the highest growth rate, at 3.8% in 2026 and 3.9% in 2027. Serbia, North Macedonia and Bosnia and Herzegovina are projected to grow by around 3%, Montenegro by 3.2%, while Croatia’s economy is forecast to expand by 2.9%.

The World Bank’s assessments point to a positive outlook for Albania’s economic development amid a regional and global environment marked by uncertainty and moderate growth.

/j.p/u.sh/

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.

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