Albania

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Economic activity in the first half of 2025 expanded by 3.6% – a similar pace as in 2024. Inflationary pressures continued to be moderate and below the target level of the central bank as core inflation remains relatively low. Monetary policy is still supportive of the economy, while the SEPA system, in operation since October 2025, will further strengthen financial integration with the EU, and will intensify and formalise cross-border transactions. The current account balance is benefiting from growing tourism and remittances. The interest of foreign direct investors in Albania is still strong, despite the global headwinds. There has been a further appreciation of the domestic currency, which is presenting a challenge to export-oriented companies.
        FORECAST*
Main Economic Indicators202220232024202520262027
Population, 1000 persons277824102377...
GDP, real change in %4.84.04.03.53.94.0
GDP per capita (EUR at PPP)121901568017040...
Gross industrial production, real change in %2.7-8.4-7.6...
Unemployment rate - LFS, in %, average10.910.78.58.48.38.2
Average gross monthly wages, EUR520648769...
Consumer prices, % p.a.6.65.32.62.72.52.4
Fiscal balance in % of GDP-3.6-1.3-0.7-1.0-1.0-1.0
Public debt in % of GDP64.157.654.2...
Current account in % of GDP-5.9-1.2-2.4-3.0-3.1-3.2
FDI inflow, EUR m137114981581...
Gross external debt in % of GDP54.146.440.7...


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. 7-8/2025

Vasily Astrov, Alexandra Bykova, Selena Duraković, Meryem Gökten, Richard Grieveson, Maciej Grodzicki, Ioannis Gutzianas, Doris Hanzl-Weiss, Gabor Hunya, Branimir Jovanović, Niko Korpar, Dzmitry Kruk, Sebastian Leitner, Isilda Mara, Emilia Penkova-Pearson, Olga Pindyuk, Sandor Richter, Marko Sošić, Bernd Christoph Ströhm and Maryna Tverdostup
wiiw Monthly Report No. 7-8, July-August 2025
38 pages including 5 Tables and 3 Figures

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 Details

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