Albania’s Economy Grows by 3.8% in 2025, Above EU and Regional Average

According to official data presented during a press conference by Minister of Economy and Innovation Delina Ibrahimaj, Albania’s economy recorded 3.8% growth in the fourth quarter of 2025, bringing annual growth to the same level. This growth rate surpasses the European Union’s average (1.4%) and the Western Balkans’ average (3%), reflecting the Albanian economy’s consistent performance throughout the year.
The services sector primarily drove economic growth, and construction was the main contributor in the last quarter, followed by public administration, education, and healthcare. Real estate activities and the trade, transport, and accommodation sectors also positively impacted economic expansion.
Household consumption continues to dominate the structure of demand, accounting for 64% of the total. Investment and government consumption have also contributed to growth. In the final quarter, all components of demand increased, with investment and net exports showing the most significant growth.
Macroeconomic indicators confirm a stable economy. Public debt has declined to 53% of gross domestic product (GDP), while the stock of foreign direct investment has reached approximately €17 billion. Total exports reached €10 billion, with services dominating and tourism providing the main contribution.
The labor market has continued to improve as well, with the employment rate reaching 68.9% and the unemployment rate falling to 8.3%. The average monthly wage rose to approximately 87,000 ALL, and household income and remittances increased as well, supporting consumption and economic activity.
At the same time, the government is monitoring market prices continuously. The Transparency Board will remain operational until fuel prices stabilize. Oversight of food prices has also been intensified to prevent abuses and protect consumers.
Preliminary data from the beginning of 2026 shows this positive trend continuing, with an increase in the number of new businesses and overall economic turnover, signaling sustained economic development.