The administration "keeps the economy afloat"/ GDP grew by 4.05% last year, but the weight of agriculture and industry continues to decline
The economy has started the year on a "good footing", according to the latest data from INSTAT. The Gross Domestic Product (GDP), in real terms, in the first quarter of 2025 is estimated to have grown by 3.39%, compared to the first quarter of 2024. The largest contribution was made by labor administration and trade, accommodation and food service. Meanwhile, agriculture, industry and information had a negative impact.
The economy also continued its positive trend in 2024, recording a real growth of 4.05% according to semi-final data published by INSTAT. Compared to 2023 when economic growth was 4.02%, this is a confirmation of the stability of economic expansion, albeit at a moderate pace.
Gross Domestic Product at current prices for 2024 is estimated at around 2.5 trillion lek or 2.5 billion euros, while for 2023 at 2.36 trillion lek, reflecting the continued expansion of economic activity in nominal terms.
The structure of the Albanian economy continues to be dominated by the services sector, which for 2024 accounts for 48.69% of GDP and has recorded a real growth of 6.51 percent, being the main driver of overall growth, followed by construction, which accounts for 11.92% of the economy and has grown by 4.52%.
On the contrary, industry, which accounts for 10.48% of GDP, has suffered a real contraction of 4.55%, while agriculture, forestry and fishing, which represent 15.45% of the economy, have decreased by 2% in real terms. The weight of these two sectors has also decreased significantly in the GDP structure for the year 2024.
The largest contribution to economic growth for 2024 was made by public administration, education and health with 1.20 percentage points, followed by trade, transport, accommodation and food services with 1.02 points, construction with 0.53 points, professional and support activities with 0.52 points, and real estate activities with 0.20 percentage points. Meanwhile, industry and agriculture have had a negative impact with 0.52 and 0.32 percentage points, respectively.
Net taxes on products have had a positive effect of 1.26 percentage points on real economic growth. On the other hand, according to the expenditure approach, final consumption accounts for 81.93% of Gross Domestic Product and has increased by 4.02% in real terms. Consumption by the population accounts for 84.11% of final consumption, while that of public administration accounts for 15.16% and that of non-profit institutions serving families accounts for a smaller share of 0.73%.
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