Recent balance of payments data from the Bank of Albania shows that foreign investors continue to favor the real estate sector, pouring roughly €174 million into properties—representing 43% of total FDI inflows. Trailing real estate are financial intermediation at 17%, energy at 9%, transportation at 5%, and hydrocarbons at 4%.

The total foreign direct investment structure reveals a shift toward new capital injections. While reinvested earnings from foreign companies still formed the majority at €206 million (51%), they contracted by 3.7% compared to the previous year. Conversely, new capital investments grew by 25.3% to €183 million, reflecting rising investor confidence. Debt instruments continued to play a marginal role, fluctuating around €14 million by the end of the quarter. /j.p/p.s./

During an event held in Durrës on occasion of the 35th anniversary of the Socialist Party, Rama said that Albania’s economy has seen impressive growth in recent times.

“This economy has experienced remarkable growth, expanding from less than €10 billion in production to exceeding €27 billion,” Rama stated.

According to him, what was once considered unimaginable a decade ago is now the reality: the national average salary has reached €912, while public sector workers earn an average of €1086.

Rama also said that we’ve successfully reduced our public debt below the 50% threshold and increased revenue, all without imposing any additional tax burdens on the public.

He emphasized that bank loans have reached 10 billion euros, while non-performing loans have decreased from 25% to 3%.

Historically, our market attracted 300 to 400 million euros annually in foreign direct investment (FDI). Last year, we shattered those benchmarks, closing at 1.063 billion euros, with domestic and foreign investments poised to sustain this upward trajectory. /r.e/p.s./

During the January-November period, there were registered nearly 21,000 new entities, indicating a growing confidence of citizens and investors in the country’s economic climate, as well as the effectiveness of reforms aimed at simplifying business registration procedures.

At the end of 2024, the number of active businesses in the country reached 237,881, marking an increase compared to 226,778 a year earlier. The distribution of these enterprises remains mainly concentrated in the most developed regions, where Tirana, Durrës, Elbasan and Vlora account for over 66% of the active businesses. Tirana continues to lead with a total of 63,212 active businesses.

The structure of Albanian businesses is dominated by the service sector, which represents 86% of the total number of businesses and generates 67.1% of the annual turnover. Within this sector, trade is one of the main employment links, involving 19.5% of the workforce. Meanwhile, the manufacturing sector, although it only accounts for 14% of the businesses, has an important role in the economy, contributing 32.9% of the turnover and employing 17.3% of the employees.

The profile of Albanian businesses is dominated by small businesses, where 85.8% are micro-businesses with one to four workers. Although small, these businesses contribute to the dynamism of the domestic economy, involving 22.6% of employment and generating 18.7% of the annual turnover. /r.e/a.f/p.s./