According to INSTAT data, the retail sales volume index reached 125.0, up by 1.6% compared to the first quarter of the year.

The growth was mainly driven by non-food items with 2.7 percentage points, followed by hydrocarbon trade with 2.1 percentage points and the food, beverages and tobacco group with 2 percentage points.

Hydrocarbons recorded the highest annual growth, at 8.4%, while compared to the first quarter, sales volume increased by 2.1%.

Sales of non-food items increased by 6.4% compared to a year earlier, while food, beverages and tobacco by 6.0%.

In quarterly terms, non-food items increased by 1.9%, while the food, beverages and tobacco group increased by 0.4%.

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

The highest average wages were recorded in financial and insurance services, at 187,267 leks, followed by information and communication, at 143,528 leks.

Construction posted the strongest annual wage growth, at 22.1%, while arts, entertainment and recreation and other services recorded the smallest increase, at 6.4%.

By occupation, managers, legislators and executive directors had the highest average wage, at 141,168 leks, followed by professionals with higher education, at 119,152 leks.

Craft and related trades workers recorded the largest wage increase, at 16%, followed by elementary occupations, at 15.1%.

Employees earning the minimum wage accounted for 25.8% of all wage earners, while those earning more than 120,000 leks represented 17.1%.

Compared with the first quarter, INSTAT said the number of employees earning medium and high wages increased, with the 60,001-120,000 leks category accounting for the largest share.

/a.f/u.sh/

Wages in the construction sector increased 4.3% year-on-year, making them the biggest contributor to the rise in construction costs.

Other costs increased 3%, transport costs rose 1.5% and machinery costs were up 1.2%, INSTAT said.

By contrast, material costs fell 0.6%. Within this category, construction materials declined 0.9%, plumbing and ventilation materials fell 0.7%, while electrical and communication materials decreased 0.1%.

Compared with the first quarter of 2026, construction costs increased 0.3% in the second quarter, with wages rising 1.1%.

INSTAT noted that the 1.1% increase in construction costs did not necessarily translate into an equivalent rise in apartment prices, which are also affected by land costs, financing, taxes, developers’ profit margins and market supply and demand.

The data show that despite lower material costs, rising wages remain one of the main pressures on the cost of building housing.

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

The decline was driven by lower prices in electricity, gas, steam and air conditioning, which fell 2.2%, mining and quarrying, down 0.2%, and manufacturing, down 0.02%, INSTAT said.

Meanwhile, the Producer Price Index (PPI) reached 129.9 in the second quarter and rose 0.1% year-on-year.

The largest annual increases were recorded in manufacturing and water supply, sewerage, waste management and remediation activities, both up 0.4%.

Within manufacturing, prices for rubber and plastic products and food products rose the most, by 1.5% each.

The biggest declines were recorded in metallurgy and electrical equipment manufacturing, both down 0.7%. Electricity, gas, steam and air conditioning prices fell 0.6%, while mining and quarrying prices declined 0.2%.

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

A total of 5,083 births were registered between April and June, down 3% from the same period a year earlier. Deaths fell 3.7% year-on-year to 4,865.

The figures show marked demographic differences across Albania’s 12 counties. Five districts recorded a positive natural increase, while seven registered more deaths than births.

Tirana recorded the largest natural increase, with 1,033 more births than deaths. Korça had the largest natural decrease, with 265 more deaths than births.

Tirana also recorded the highest number of births, at 2,310, while Gjirokaster had the fewest, with 66. Nine counties recorded an increase in births from the second quarter of 2025, while three saw declines.

Dibra recorded the largest percentage increase in births, at 14.6%, while Tirana posted the steepest decline, at 12%.

Tirana also recorded the highest number of deaths, at 1,277, while Kukes had the fewest, at 97. Durres registered the largest increase in deaths, at 10.4%, while Kukes recorded the sharpest decline, at 22.4%, compared with the second quarter of 2025.

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

Citing data from the National Institute of Statistics, INSTAT, Ibrahimaj said growth was driven by rising household consumption and increased investment activity.

“The 3.51% GDP growth in Q2 is significantly above the EU average of 1.5%, and also higher than the 2.9% average among Western Balkan countries,” Ibrahimaj said during a conference titled “Stability and Development through Economy and Innovation.”

She noted that all economic indicators point to stronger household spending, supported by rising incomes and wage growth, which have boosted domestic demand.

The Economy and Innovation Minister also highlighted growth in Gross Fixed Capital Formation, indicating a rebound in private and public investments.

“The increase in fixed capital formation reflects growing demand in the economy,” she said.

She underlined the government’s commitment to fostering a new economic model based on innovation, digitalisation, entrepreneurship, and human capital.

Ibrahimaj added that macroeconomic stability, support for productive sectors, and investment promotion will remain key pillars of Albania’s development strategy.

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

Compared to the first quarter of 2025, import prices edged down slightly by 0.1%. The report highlights that prices for imported electricity, gas, steam, and air conditioning fell by 5.3%, significantly influencing the overall import price index.

Prices in the water supply and waste management sector dropped by 2.2%. The manufacturing industry saw a modest decrease of 0.4%, with the largest declines in wood and wood products (-1.2%) and food and paper products (each -0.9%).

Conversely, the extractive industry recorded a slight increase of 0.1% year-on-year.

Quarter-on-quarter, import prices of electricity and gas fell by 0.5%, while water supply and waste management prices decreased by 0.6%. Paper products within manufacturing also saw a 0.5% drop, while the extractive sector again showed a slight 0.1% increase.

/j.p/u.sh/

The construction cost increase was driven by a 6.2% rise in construction sector wages, followed by machinery costs at 2.2% and transportation expenses at 1.4%.

Meanwhile, construction material prices fell slightly by 0.7%, although costs for electrical and communication materials rose by 1.8%.

Quarter-on-quarter, construction costs slightly increased by 0.4% compared to Q1 2025, driven mainly by a 1.6% rise in wage expenses. Machinery and transport costs each rose by 0.5%, while spending on materials declined by 0.1%.

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

In its quarterly lending survey for Q2, 2025, the central bank reported that businesses across all categories showed high credit demand, both for financing operations and for investment purposes.

According to central bank, the growing need for consumption-related financing and home purchases were key drivers of credit demand. In contrast, credit demand for short-term liquidity needs remained low.

The survey found that banks maintained similar lending policies for businesses during the second quarter, keeping standards, terms, and conditions largely unchanged. The volume of loans approved also remained comparable to that of the first quarter.

For household lending, the central bank noted that lending conditions remained mostly stable, with no significant changes to standards or terms.

/j.p/u.sh/

Data from central bank show that money sent home by Albanian citizens living abroad in the second quarter of 2024 amounted to 268 million euros.

According to Bank, the flow of remittances increased by over 35.8 million euros compared to the same period of the previous year.

The Bank highlighted that the flow of remittances via the formal banking system channels, as well as cash money has increased.

Most of the remittance flows come from Greece and Italy, followed by England and Germany.

Central bank noted that high remittances flow, foreign direct investments and tourist spending have been the main factors causing strong devaluation of leading international currencies in general and the European single currency euro in particular.

/u.sh/