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.

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The virtual operational model of this Albanian technology park has also garnered recognition on the international stage.

The International Association of Science Parks and Areas of Innovation (IASP) has selected Durana Tech Park as a successful model among technology and science parks worldwide. It will present its experience at the 43rd World Conference on Science Parks and Areas of Innovation, taking place from October 27 to 30, 2026, in Cannes, France.

The conference is hosted by Sophia Antipolis, one of the most well-established innovation ecosystems in Europe.

Yet, even as its virtual model gains international exposure, Durana Tech Park is preparing for its next chapter: the development of its physical infrastructure. On October 26, 2026, as part of this process, the first public hearing was held regarding the Strategic Environmental Assessment (SEA) for the Detailed Development Plan of the “Durana Tech Park” – a technology and science park to be constructed in Xhafzotaj, within the Municipality of Shijak.

Project details and the development phases of the Park were presented by the Executive Director of Durana Tech Park Florensa Haxhi with the Deputy Minister of Infrastructure and Energy Erlind Sulo, also in attendance.

The development plan for the Park currently covers an area of ​​approximately 14 hectares. The presentation introduced the concept of an integrated space where technology, scientific research, innovation, and entrepreneurship are combined with infrastructure and support services. In addition to the area’s territorial and infrastructural characteristics, the project’s long-term outlook was also presented; this includes exploring expansion opportunities onto state-owned properties held by the Albanian Investment Corporation, with the goal of creating a larger innovation district.

The deadline for institutions, the community, and stakeholder groups to submit comments and recommendations during this phase is November 5, 2026.

The transition from virtual operations to the construction of physical infrastructure marks a new milestone for Durana Tech Park. The objective is to ensure that the development of a modern technology and innovation hub proceeds in tandem with adherence to environmental standards, public transparency and cooperation with the relevant authorities.

The development of Durana is supported by the expertise of the World Bank Group. /k.s/j.p/p.s./

Non-life insurance, which accounts for the largest share of the market, generated 18.8 billion leks in premiums, up 1.5% from the same period last year.

Within the segment, premiums from fire and natural disaster insurance fell by 14.4%, reducing their share of total non-life premiums to 8.6% from 10.2% a year earlier.

Health insurance premiums, by contrast, rose by 12.2% year-on-year.

Life insurance premiums increased by 6.8% in January-September. The segment remains heavily reliant on borrower life insurance linked to loans from financial institutions.

Borrower life insurance accounted for 84.1% of total life insurance premiums, up from 82.6% in the same period of 2025.

The data point to moderate overall growth in Albania’s insurance market, with performance varying across product categories.

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Insurers collected about 18.34 billion leks in premiums from January to August, up 2.44% from the same period a year earlier. Claims payments rose 9.04% to about 5.96 billion leks.

The number of insurance contracts increased 6.14%, while the number of claims paid rose 6.39%.

Motor insurance remained the largest segment, accounting for 68.78% of the non-life market. Compulsory motor insurance premiums reached about 11.52 billion leks, up 4.01%, while claims payments rose 9.16% to 3.88 billion leks.

Voluntary insurance claims payments increased 14.15% to about 1.64 billion leks, while premiums reached 5.23 billion leks.

Life insurance premiums rose 6.19% to about 1.60 billion leks, while claims payments increased 14.71% to around 260 million leks.

AMF said market growth was driven by motor, health and accident insurance, as well as insurance products linked to lending.

Claims activity remained broadly stable in recent months, both in terms of payments and the number of cases, the regulator said.

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Presenting economic indicators for January-August, Ibrahimaj said the figures showed sustained growth and further consolidation of macroeconomic stability.

Public administration, education and healthcare recorded the strongest growth among major sectors, with the latter rising 12.14% and contributing 1.38 percentage points to overall growth, she said.

Trade, transport and accommodation grew 5.53%, contributing nearly one percentage point, driven by increases across wholesale and retail trade and reflecting stronger household consumption.

Transport and accommodation also benefited from rising tourism demand, Ibrahimaj said.

Real estate also expanded, linked partly to tourism, while information and communications grew 2.58%. Information technology services within the sector increased by more than 10%, continuing a multi-year growth trend.

Industry grew 0.47%, with electricity production up 6.14%, Ibrahimaj said.

Agriculture, forestry and fishing were among the sectors recording declines, although agricultural output in nominal terms rose about 2%, which she said was also reflected in higher agricultural and food exports.

Exports of goods and services rose 9.78% in the second quarter, with tourism-related services accounting for most service exports. In the first half of 2026, total exports reached 3.7 billion euros, including 2.4 billion euros in travel-related services, she said.

Imports of goods and services increased 7.55% in the second quarter.

Ibrahimaj also said public debt had fallen to 49% of GDP in the second quarter, from 54% a year earlier.

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The EBRD said in its latest report that Albania’s economy grew 3.8% in 2025 and maintained strong momentum at the start of this year, expanding 3.7% in the first quarter, driven particularly by public administration, construction and real estate.

The country’s external position also improved, with a narrower current account deficit, while record tourism revenues and strong remittances continued to support the economy. Foreign direct investment rose 11% year-on-year in the first quarter.

Public finances also strengthened. The budget moved into surplus in the first half of the year, following a deficit equivalent to 1.8% of GDP in 2025, while public debt fell to 49% of GDP by mid-year.

Credit growth remained strong and asset quality in the banking sector improved. The EBRD said these developments, together with investment and reforms linked to EU integration, would support economic growth in the period ahead.

The bank also flagged risks to the outlook, including competitiveness pressures, climate-related risks and volatility in energy prices.

Across the Western Balkans, the EBRD expects economies to grow by an average 3% in 2026 and 3.5% in 2027. Albania is forecast to grow 3.5% in both years.

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Speaking on the “Flasim Shqip” podcast, Rama said property transactions had become more transparent in recent years, also as a result of the work of the Special Prosecution Office (SPAK).

“Transactions for the sale of these homes have been transparent for several years now, also as a result of the work done by SPAK,” Rama said.

He said banks and state institutions were closely monitoring developments in the property market.

“We follow these dynamics with real estate agencies and cross-check the data. The Bank of Albania monitors the market. So far, there are no signs of a bubble,” Rama said, dismissing as “madness” claims that 84,000 apartments remained unsold.

Rama also pointed to stronger domestic consumption and rising overall incomes as evidence of economic growth.

“We are collecting more revenue without raising taxes. We have not increased taxes for years,” he said, attributing the higher revenue partly to greater economic formalisation and partly to increased economic activity and consumption.

“All of this shows that we are in a situation where the economy has genuinely grown,” Rama said.

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The findings are part of the World Bank’s FY 2026 Albania Country Opinion Survey Report, based on responses from 219 representatives of public institutions, businesses and civil society.

Alongside tourism, agriculture and agro-processing, information technology and digital services, renewable energy, green infrastructure, construction and light manufacturing were identified as sectors with significant potential to drive employment and economic development.

In tourism, the development of agritourism, cultural and historical tourism, and adventure tourism could help extend the season and create more jobs across the country, the report said.

Agriculture and agro-processing also offer opportunities to expand value-added activities, processing, exports, storage and packaging, creating new prospects for employment and economic development outside major urban centres.

Information technology and digital services were likewise identified as promising areas for skilled employment and export-oriented growth.

Agriculture and food security ranked highest among development priorities, selected by 49% of respondents, followed by education at 47%. Healthcare was selected by 36%, jobs by 34%, and digital infrastructure by 32%.

The findings highlight the potential for Albania’s economy to generate more employment through the development of higher-value sectors, investment, digitalisation and diversification of tourism.

The World Bank has made job creation, strengthening human capital and sustainable growth key priorities in its strategy for supporting Albania.

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Minister of Tourism, Culture and Sports Blendi Gonxhja published today the performance data of this institution for the period January-July 2026, highlighting the increase in investments, projects and field work for the documentation and study of cultural heritage.

One of the main results is the discovery of 19 new archaeological sites in different areas of the country, including Shkodra, Lezha, Lushnja, Fier, Korça, Erseka, Pogradec and Divjaka.

According to IKTK data, the number of new archaeological sites has increased by 280% compared to 2024 and by 171% compared to 2025.

After a 25-year pause, archaeological excavations have resumed in the Lushnja region with major discoveries. In Zgjanë, experts uncovered a Roman thermal complex dating back to the 2nd and 3rd centuries. Meanwhile, at Kodra e Pusit in Murrizë-Peqin, they identified an ancient settlement that spans from the 1st century BC to the 6th century AD.

In the field of archaeological monitoring, there were signed 127% more agreements in 2026 compared to 2024 and 14% more than in 2025.

Meanwhile, archaeological monitoring and inspections increased by 367% compared to 2024 and by 195% compared to 2025.

The IKTK has also reported an increase in conservation, restoration, survey, observation and archaeological excavation projects. Compared to 2024, these projects increased by 182%, while compared to 2025 the increase is 72%.

In terms of investments in cultural heritage objects, the institution reports an increase of 400% compared to 2024 and 67% compared to 2025.

The accumulated income from IKTK services has increased by 137% compared to 2024 and by 108% compared to 2025.

According to the institution, the increase is related to the increase in services provided and chargeable, in accordance with Joint Instruction No. 5, dated 27.08.2025.

During 2026, 7 by-laws were also approved in the field of material cultural heritage, 17% more compared to 2025.

Minister Gonxhja stated that the seven-month results highlight IKTK’s growing commitment to protecting, documenting, restoring, and studying cultural heritage nationwide. /gj.m/ /a.g/p.s./

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.

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