Albania’s economy is on the up, driven by a booming tourism sector and smart economic policies. With a growth of 3.9% in 2023, Albania’s GDP is expected to keep rising at 3.5% annually until 2029.
The IMF has praised the country’s progress, highlighting a drop in public debt and inflation staying under control, with rates expected to stay below 3% by the end of 2024. The government is also set to exceed its budget target for 2024, expecting a surplus of 0.5%.
However, Albania still faces big issues. The country’s aging population, emigration, and low productivity are serious challenges to future growth. The IMF says the government must speed up reforms to boost productivity and improve education.
While the banking sector is stable, there are concerns about too much lending in real estate. The IMF also warns that the government needs to increase fiscal transparency and tackle corruption to keep moving towards EU membership.
