"Tourism boosted the Albanian economy" - EC: Example of price stability in the region. Exports of goods suffer from strong lek
Serbia, Albania and Bosnia and Herzegovina, the three largest economies in the region, generally maintained the same pace of economic expansion in the last quarter of 2025. Kosovo recorded the strongest slowdown in growth, while Montenegro recorded a slightly lower growth rate than in the previous three months.
According to a European Commission report, Albania recorded a 3.7% increase in Gross Domestic Product, leaving behind countries like Serbia and moving at almost the same pace as North Macedonia.
This progress was strongly supported by the services and tourism sectors, where exports increased by over 17%. However, not everything is bright in foreign trade; unlike services, exports of goods suffered a drastic decline, reflecting the difficulties that domestic production is facing in the face of an increasingly strong lek.
Compared to its neighbors, Albania holds the "flag" of price stability. With an inflation rate of only 2.3%, our country has the lowest cost of living in the region, far from Kosovo's figures that exceed 5%. This has allowed the interest rate to remain at a low level of 2.5%, giving breathing space to businesses and families, while other countries are facing higher credit costs.
On the other hand, although employment increased, Albania was an exception in the region, as it was the only country where unemployment marked a slight annual increase, stopping at 9%. However, encouraging news comes from young people, with youth unemployment falling significantly to 15%.
In terms of public finances, Albania shows a discipline that stands out in the region. Together with Kosovo, our country managed to maintain a budget surplus during 2025, while countries such as Serbia and North Macedonia saw their balances deteriorate. Albanian public debt has fallen to 53.5%, a much healthier level than that of Montenegro, which continues to be the highest in the region.
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