Administration, the "engine" of the economy even at the beginning of the year/ Domestic Product reaches 27.9 billion euros in 2025. It expanded by 3.66%
The Albanian economy appears to have started 2026 on a positive note, confirming its steady growth performance even after the expansion recorded a year ago. According to the latest data published by INSTAT, the Gross Domestic Product (GDP), in real terms, grew by 3.71% in the first quarter of 2026, compared to the same period last year. The public administration made the largest contribution to economic growth, while industry and agriculture, the traditional and most important sectors in the long term, continued to slow down the expansion of the economy.
The Albanian economy also continued to grow throughout 2025. According to semi-final data from INSTAT, GDP expanded by 3.66% in real terms, while the value of the economy reached 2.65 trillion lek, or about 27.9 billion euros, from 2.52 trillion lek a year earlier. Although the growth rate was lower than the 4.03% recorded in 2024, the Albanian economy continued to expand, supported mainly by the services sector.
In the first quarter of this year, public administration, education and health activities made the largest contribution to economic growth with 1.68 percentage points, followed by real estate activities with 0.52 percentage points.
The same trend was also evident in 2025. Public administration, education and health contributed the most to economic growth with 1.65 percentage points, followed by construction with 0.50 percentage points, trade, transport, accommodation and food services with 0.47 points, and real estate activities with 0.42 percentage points. Meanwhile, industry and agriculture remained the two sectors that held back economic expansion, contributing negatively with 0.41 and 0.38 percentage points, respectively.
The structure of the Albanian economy continues to be dominated by the services sector, which accounts for 49.1% of Gross Domestic Product and grew by 5.83% in real terms during 2025. Construction accounts for 12.56% of the economy and expanded by 4.11%, while industry accounts for 10.08% of GDP and contracted by 3.72%. Agriculture, forestry and fishing represent 14.59% of the economy and recorded a decline of 2.5%, continuing to lose weight in the structure of the economy.
On the demand side, consumption continues to be the main pillar of the economy. In 2025, it accounted for 82.2% of GDP and grew by 4.66% in real terms.
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