“Real estate and construction boosted the economy” - EBRD Report: Foreign direct investment reached a record level in 2025

In its latest report, the European Bank for Reconstruction and Development (EBRD) estimates that Albania's economy grew by 3.7% last year, supported by real estate, construction and information technology (ICT) services. While industry and agriculture contracted due to a strong local currency and weak external demand.
According to the EBRD, consumption and services exports offset a decline in goods exports. The current account recorded a small surplus, supported by tourism and remittances, even as the goods deficit widened.
“Foreign direct investment reached a record high in 2025, concentrated in real estate and financial services. Inflation stood at 2.3 percent in December 2025, although core inflation increased due to rising rents.
The key interest rate was cut to 2.5 percent in July 2025 and has remained unchanged since then. Meanwhile, the EBRD forecasts that economic growth is expected to remain close to 3.5% in 2026 and 2027, supported by reforms that align regulations with those in the EU and potential EU-funded investments.
But, in the report, the EBRD also warns of risks, such as climate-related ones, particularly droughts that affect energy production, while noting that these risks are partially mitigated by a more diverse mix of renewable sources.
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