Immigrants brought in around 1.1 billion euros/ Year 2025: Balance improves, but exchange rate weakens purchasing power
Remittances from Albanian emigrants reached 1.12 billion euros in 2025, the highest level recorded so far in the balance of payments series. According to data from the “Bank of Albania”, compared to 2024, when inflows were 1.04 billion euros, the increase is 73.69 million euros, or 7.1%. However, the pace of expansion has slowed significantly from 12.6% a year earlier, which indicates that the flow continues to grow, but no longer with the same strength as in 2024.
In the long term, the picture remains strong. Compared to 2008, when remittances were 833.31 million euros, in 2025 they are about 34.3% higher. This means that Albania has not only recovered pre-crisis levels, but has surpassed them, taking this source of income to a new historical record.
But, beyond the nominal value, this increase in remittances comes in a special context, the depreciation of the euro. With the exchange rate having touched historic lows against the lek, the real value of remittances in local currency is relatively lower for beneficiaries in Albania. So, even though more euros are entering the economy, their purchasing power has been significantly affected by the depreciation.
This development creates a paradox, more remittances in euros, but less real impact for Albanian families, especially those who rely on these remittances for daily consumption.
We emphasize that according to INSTAT data on international migration, remittances are used almost entirely to cover basic needs, with about 90% of families spending them on food and daily expenses, 36% on health expenses and 30% on education. Meanwhile, productive investments remain minimal, with less than 2% of funds directed towards business expansion or agricultural inputs.
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