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 public broadcaster RTSH, Ibrahimaj said the government was required to adopt the updated legislation by the end of the year and that the revised framework would place particular emphasis on legal certainty for investors.

“We are obliged to approve this law within the year. We will have an updated investment framework and will review all components related to guaranteeing legal security for investors,” she said.

Asked about protests against a proposed tourism development project in the Zvërnec area, Ibrahimaj said she believed competition among countries in the region for tourism revenues and investment created incentives for capital to be directed elsewhere rather than to Albania.

“I have no doubt that competition in tourism can fuel protests. We are competing for tourism with all our neighbours, and there is clearly an interest in attracting investment to other countries rather than Albania,” she said.

The Minister said the demonstrations were likely driven by a range of interests and actors rather than a single group.

“I do not believe there is only one force behind these protests. There are different currents and different interests at play,” Ibrahimaj said, adding that some participants may be motivated by genuine concerns, while others could be influenced by specific political or economic interests.

She also suggested that individuals, entities and even states with vested interests could seek to encourage opposition to certain projects, though she did not provide evidence to support the claim.

Ibrahimaj said the government remained willing to engage with protesters and discuss their concerns regarding the project.

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Officials from the Finance Ministry said the draft law sets clear rules for planning, awarding, managing, and supervising concession contracts, based on principles of transparency, non-discrimination, proportionality, and legal certainty.

“The draft law aims to unify competitive procedures; strengthen ex-ante and ex-post control by the Finance Ministry; guarantee transparent rules for contract implementation and monitoring; manage and allocate risks between parties; harmonize with EU standards; enhance the oversight role of the Finance Ministry, APP and ATRAKO; and promote best value for money while protecting the public interest,” said Blerta Rama, Deputy Minister of Economy and Innovation.

She added that the law supports government priorities for economic growth by mobilizing private capital in sectors such as infrastructure, energy, environment, tourism, health, and education.

“It is part of the 2025 General Analytic Plan for Draft Acts, the National EU Integration Program, and the public finance management strategy, contributing to fiscal consolidation and improving the business climate,” she said.

Answering a question from lawmaker Erion Braçe regarding the inclusion of prisons – considered a national public service – ATRACO Director Emiliano Gjika said the relevant provision aligns with EU directives and does not directly include this sector, but rather services provided to prisons. He added that the draft law removes the clause allowing symbolic contracts with a value of 1 euro.

The new law requires institutions to make public the bid price, price lists, catalogues, and information on selection criteria for each concession. Feasibility studies, approved by the Finance Ministry and analyzing all costs, benefits, and budget risks, must also be conducted in advance for every concession.

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The government decision aims at increasing efficiency in public fund usage and delivering on the country’s development goals.

According to the Ministry of Finance, the 2025 state budget was changed following a review of fiscal performance during the first five months of the year.

A key measure in the government’s latest normative act is approval of a new sovereign guarantee scheme for agriculture and support for efforts to strengthen cybersecurity and upgrade digital infrastructure across the public sector.

The new sovereign guarantee scheme valued at 3 billion lek is designed to improve access to finance for small and medium-sized enterprises (SMEs), and boost productive capacity and competitiveness in farming.

The Ministry of Finance highlighted that the measure is part of broader efforts to bolster priority sectors within the economy and to encourage public investment initiatives with sustainable impacts on economic growth.

The normative act envisions relocation of about 11.8 billion lek, including 5.6 billion lek sourced from identified savings. These funds will be directed towards strengthening digital security frameworks and upgrading critical national infrastructure.

Additional reallocations are earmarked for advancing information technology systems within the public administration, aimed at increasing the efficiency and quality of public services.

Despite these fiscal adjustments, the Ministry of Finance reassured that the budget deficit target remains unchanged at 68.1 billion lek and that there will be no adverse effects on the public debt level.

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At the heart of this change lies chapter 35 of the negotiating framework, with normalization of the relations with Kosovo now becoming a formal prerequisite for Serbia to advance on the path towards the EU membership.

This chapter now explicitly demands Serbia’s unwavering commitment to fulfilling the obligations outlined in the Agreement on the path to normalizing relations with Kosovo.

The revised negotiating framework introduces a specific sentence that leaves no room for ambiguity: “Serbia fully implements the obligations arising from the Agreement on the path to the normalization of relations between Kosovo and Serbia, as outlined in its Implementation Annex, as agreed upon on March 18, 2023.”

According to the EU spokesperson Peter Stano, the European Commission and the European External Action Service (EEAS) jointly proposed these changes and have welcomed the Council of Ministers decision, emphasizing its confidence.

“The Agreement on normalization of relations will form an integral part of their European integration path. The Implementation Annex, painstakingly negotiated in March 2023, now stands as a testament to the shared determination of the two countries,” Stano said.

Stano confirmed that such a prerequisite will be also formalized on Kosovo, adding  that a special normalization group will oversee its compliance with the Agreement.

“The upcoming meeting of this group will recalibrate its agenda to align with the revised framework. The EU expects unwavering commitment from both parties, not only to the Agreement but also to all outstanding obligations arising from their dialogue. This commitment is pivotal, as it directly impacts their journey toward European integration,” Stano stated.

The ambassadors of the EU member states had agreed on the amendments last week.

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Kumbaro hinted that the map of protected areas could be reviewed.

“The protected areas are absolutely a top priority. However, we should also understand what has happened with the protected areas, but they are also part of nature that need to be protected as they bear some important, unique values ​​of biodiversity and the ecosystem they create,” Kumbaro said.

Albania is a forerunner compared with other countries in the region.

“In compliance with the law of protected areas, where Albania is a forerunner compared with other countries in the region, since no Balkan country has established a protected areas agency, as it is the case in Albania, the Agency of Protected Areas with 12 regional directorates, tasked with management of the protected areas,” Kumbaro said.

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Minister Mete made the statement during the discussion of the draft budget for 2024 in the Parliamentary Committee on Economy and Finance.

“We are doing some preliminary analyzes with the World Bank and the International Monetary Fund. One of the topics of discussions is the indexation of pensions. We index the total pension that pensioners receive, but the pension consists of the contributory and supplementary element. The indexation format of each element of the pension will need revision”, he said.

During the year 2024, 4 billion ALL have been provided for the indexation of pensions and 3.6 billion ALL for the year-end bonus./r.e/p.s./