“Albanian economy, moderate growth in 2025-2027” - EU Forecasts: Tourism “boom” falls. Investments will remain strong
The Albanian economy continues to grow, albeit at a more moderate pace compared to recent years. According to the European Commission's forecasts for 2025–2027, real GDP growth is expected to remain at 3.6% in 2025 and 3.5% in 2026 and 2027, supported mainly by domestic demand, private consumption and investments in the construction and tourism sectors.
After exceptionally strong growth in recent years, the tourism sector is expected to mature, with slower growth in foreign arrivals and tourism receipts. Investment is expected to remain strong, supported by favourable financing conditions, sustained credit expansion and high business confidence, together with EU funds.
Steady wage growth is expected to continue, supporting robust private consumption. After significant improvements in the external position in recent years, the current account deficit is projected to widen slightly from 2.4% in 2024 to below 3%, driven by a widening merchandise trade deficit. Exports continue to under-compensate the trade deficit, remaining a weak point for the economy.
Inflation is expected to stabilize around 2.5% in 2025, reflecting a stable macroeconomic environment. Public debt is on a steady decline, from 77.6% of GDP in 2020 to 59% projected for 2025, thanks to the positive primary balance and nominal GDP growth.
Employment increased in 2025 and is expected to grow further during 2026-2027, albeit at a more moderate pace. A higher labor force participation rate, driven by rising wages, is expected to be the main driver of labor supply growth, while continued emigration will pose a drag.
The Albanian economy is moving towards a consolidation phase, where fiscal stability and sustainable growth are evident, but challenges in exports and the trade balance require special attention.
Special Electoral Reform Commission Established - Gjiknuri and Bylykbashi: ODIHR Recommendations Must Be Addressed
The Special Electoral Reform Commission was constituted this Tuesday. The socialist co-chair of this commission, Damian Gjiknuri, said that the commission......
Are we ready to manage the EU's billions for agriculture? - Europe sets 18 benchmarks for the country to close Chapter 5
On its journey towards membership in the European Union, Albania has entered a crucial phase of negotiations, where the closure of Chapter 5, which includes......
Business growth, law on collective financing is being prepared - Hirtric: EBRD has over 60% of its investments in private enterprises
Global Entrepreneurship Week continues with panel discussions on entrepreneurship or start-up development. In today's panel, the focus was on unlocking......
EU, 27% of GDP on social welfare - Which European countries spend the most on this sector?
All European Union countries increased social welfare spending in 2024, with an expansion of almost 7%, bringing the total budget to almost 5 billion......
Solar plant in Belsh - EBRD prepares tender for 40 million euro project
The European Bank for Reconstruction and Development has prepared the tender for the construction of the solar power plant in Belsh, a project of the......
"Expansion of the insurance market and the capital market" - Candidate for the leadership of the AFSA, Adela Xhemali presents the platform
Former Deputy Minister of Finance, Adela Xhemali, is the candidate proposed by the Council of Ministers to head the Financial Supervisory Authority for the......
Germans, more "hands-off" for Christmas - Survey: Citizens will spend less on holiday gifts
German consumers plan to spend less money on gifts this Christmas, although expectations for the festive season remain high. According to a new survey by......
"Emergency" energy supply - ERE opens the competition for the Supplier of Last Resort: Importance, as the free market is expanding
The Energy Regulatory Authority has officially opened the procedure for the selection of the Supplier of Last Resort, known as FMF, an essential service for......
