Albania

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The economy maintained solid growth in the first half of 2026. Inflation has risen, but remains broadly contained, credit continues to support domestic demand, and public finances have improved. However, employment is contracting, and the high level of emigration continues to reduce labour supply – despite a recent rapid rise in immigration. High wage growth reflects these pressures, and the appreciating lek adds to the difficulties of export-oriented firms. Foreign direct investment continues to grow strongly, but mostly into real estate. Albania is advancing quickly towards EU membership, but domestic political tensions cast a shadow over the otherwise resilient economic outlook.
        FORECAST*
Main Economic Indicators202320242025202620272028
Population, 1000 persons241223772350...
GDP, real change in %4.04.03.73.83.73.5
GDP per capita (EUR at PPP)155301674017940...
Gross industrial production, real change in %-8.4-7.5-2.6...
Unemployment rate - LFS, in %, average10.78.58.48.38.28.1
Average gross monthly wages, EUR648769860...
Consumer prices, % p.a.5.32.62.32.93.03.1
Fiscal balance in % of GDP-1.3-0.7-1.8-1.3-1.5-1.8
Public debt in % of GDP57.654.252.9...
Current account in % of GDP-1.2-2.4-0.7-0.9-2.6-2.4
FDI inflow, EUR m149815811636...
Gross external debt in % of GDP46.340.738.0...


Basic data are continuously updated.

* Forecasts are changed beginning of January, April, July and November.
See Press Conferences.

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Monthly Report No. 7-8/2026

Vasily Astrov, Alexandra Bykova, Selena Duraković, Meryem Gökten, Richard Grieveson, Ioannis Gutzianas, Gabor Hunya, Branimir Jovanović, Biljana Jovanovikj, Niko Korpar, Dzmitry Kruk, Isilda Mara, Michał Możdżeń, Emilia Penkova-Pearson, Olga Pindyuk, Sandor Richter, Marko Sošić, Bernd Christoph Ströhm and Marina Tverdostup
wiiw Monthly Report No. 7-8, July-August 2026
52 pages including 5 Tables

Details

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Executive summary

Olga Pindyuk
in: The Crisis is Over, but its Scarring Effects are Hindering Recovery
wiiw Forecast Report No. Spring 2024, April 2024 , pp. I-VII
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