Albania’s economy is set to grow by 3.7% in 2025, according to the European Bank for Reconstruction and Development (EBRD), which has kept its forecast unchanged since September 2024.
But while growth remains steady, the outlook isn’t all rosy. Higher imports and a widening current account deficit are dampening the picture, with EBRD calling the forecast “negative.”
Across the Western Balkans, economies are set to expand by 3.6% in both 2025 and 2026. However, the bank downgraded its overall regional growth outlook by 0.3 percentage points, citing weaker external demand and sluggish public investment projects.
Ukraine, still grappling with war and inflation, is expected to grow 3.5% in 2025, rising to 5.0% in 2026, assuming a ceasefire happens by year-end. Meanwhile, inflation is cooling, dropping from 17.5% in October 2022 to 5.9% in December 2024, though it’s still above pre-pandemic levels.
EBRD warns of more risks ahead, including potential US tariff hikes, which could hit economies like Jordan, Slovakia, Hungary, and Lithuania the hardest.
As for Albania, growth is still on the cards—but challenges loom large.
