Confidence in Albania’s economy dropped in January, as business and consumer sentiment fell by 0.8 points. While the decline is concerning, the indicator still stands around 6 points higher than the long-term average.
The industrial sector led the downturn, with confidence plummeting by 4.7%—a continuation of a steady decline since late 2024. The construction sector also saw a 4.1% drop, although it remains above historical levels.
Retail and consumer confidence followed suit, dipping by 2.9% and 3% respectively. However, the services sector bucked the trend, rising by 4.4%, with businesses showing increased optimism about demand and activity.
Despite the overall drop, the services sector’s strong performance offers a glimmer of hope for Albania’s economy as 2025 unfolds.
