Albania’s economy is on course to become one of Europe’s fastest-growing in 2024, according to the International Monetary Fund (IMF), which forecasts 3.6% GDP growth driven by domestic demand, tourism, and construction.
The IMF mission, led by Anke Weber, held discussions in Tirana from November 13-21 as part of its annual Article IV consultation. The team praised Albania’s economic resilience, highlighting prudent fiscal policies that have reduced public debt and a stable monetary approach that has eased inflationary pressures.
“Following 3.9% growth in 2023, Albania’s economic outlook remains robust,” the IMF said, noting inflation is expected to fall to 2% by the end of 2024, below the central bank’s 3% target. The current account deficit is projected at 3.4% for 2024, with slight increases expected in the medium term due to large public investments.
Despite the optimism, the IMF flagged persistent structural challenges, including rapid population aging, emigration, and institutional weaknesses that weigh on the business climate. The organization also urged reforms in tax policies and property laws to support long-term fiscal health and economic competitiveness.
Growth for 2025-2029 is expected to average 3.5%, bolstered by tourism and domestic demand. Public debt is forecast to decline to 50% of GDP by 2029, sustaining medium-term economic stability.
“The banking sector remains strong and liquid,” the IMF noted, while recommending further strengthening of some capital positions. Governance reforms and a shift toward higher-value-added industries were cited as crucial to Albania’s EU integration prospects.
