Albania’s economy maintained strong momentum in 2024, growing by 3.9%, and is projected to expand by 3.2% in 2025 and 3.1% in 2026, according to the World Bank’s latest report on the Western Balkans.
The growth has been driven by robust domestic consumption, higher investment, and rising tourism revenues. The Bank notes, however, that global economic uncertainties and shifting trade dynamics have increased risks to the outlook.
In 2024, Albania recorded positive economic indicators: unemployment dropped to 9.4%, and labor force participation rose to 75.7%. Inflation decreased sharply to an annual average of 2.2%, mainly due to easing import-driven pressures.
While moderate growth is expected over the next two years, the World Bank underlined the importance of continued reforms to enhance productivity, improve the business environment, and strengthen digital governance.
“Albania’s growth is expected to remain stable in the near future, though risks from global trade and economic volatility persist,” said Richard Record, Acting Country Manager for Albania. He emphasized that deeper regional integration and alignment with the European Union will also be critical.
The forecasted growth is likely to contribute to further reductions in poverty. Inflation is expected to return to the 3% target in 2025 and remain around that level in the medium term.
Meanwhile, Albania’s current account deficit is projected to stabilize around 3.7% of GDP from 2025 onward, slightly higher than in 2024 but below historical averages. The country’s primary fiscal balance is expected to stay positive, averaging 0.4% of GDP in 2025, with public debt projected to decline to an average of 52.8% of GDP over 2025–2027.
