According to INSTAT data, economic activity expanded by 3.6% in the second quarter, broadly in line with, though slightly below, the pace recorded in the previous quarter.

Growth was driven mainly by stronger consumption and investment, while net exports made a marginal positive contribution. Fiscal policy also continued to maintain a consolidating stance.

By sector, growth was supported mainly by construction and services, while industrial and agricultural activity continued to contract, Sejko said.

“Available data suggest a similar economic performance in the third quarter,” he said.

The improvement in economic activity has also been reflected in the labour market. The unemployment rate fell to 8.3% in the second quarter, close to its historic low, while employment in the non-agricultural private sector rose 2.3%.

Average wages increased 11.5% year-on-year during the quarter.

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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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