Vienna Institute for the Albanian Economy/ Autumn forecasts speak of an economic growth of 3.5% in 2025
The Vienna Institute for International Economic Studies has published its latest report with its autumn projections for 2025, lowering the economic growth rate compared to this year's summer projections published in July. According to the latest bulletin, Albania's Gross Domestic Product will expand by 3.5% this year, down from 3.7% previously projected.
According to the Report, inflationary pressures continued to be moderate and below the central bank's target level, as core inflation remains relatively low. Monetary policy continues to support the economy, while the SEPA system, which has been in operation since October 2025, will further strengthen financial integration with the European Union and will intensify and formalize cross-border transactions.
Tourism and remittances are improving the external balance, and foreign investor interest remains high. However, the further strengthening of the lek is creating difficulties for exporting businesses.
The Vienna Institute for International Economic Studies predicts that Montenegro, Albania and Kosovo are expected to have the highest economic growth in the region for the current year, but also for the next two years. We emphasize that for Kosovo, the Gross Domestic Product, for 2025, is expected to expand by 3.9%.
The Vienna Institute, according to forecasts, says that the country with the lowest economic growth in the Western Balkans, through 2025, is expected to be Serbia with only 2%.
Albania's consumer price inflation estimates predict an inflation rate of 2.7%, higher than last year but better than the region. Meanwhile, the unemployment rate for the current year is expected to be 8.4%, again the lowest in the region.
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