Minister Malaj Reports Strong Economic Growth as Budget Revenues Rise 11.7% in the First Four Months of 2026

Petrit Malaj, the Minister of Finance, presented the country’s key economic and fiscal performance indicators for the first months of 2026 during a press conference. He stated that the increase in both central and local government revenues is indicative of the expansion of economic activity, the further formalization of the economy, and the rising employment.
According to Minister Malaj, the total budget revenues for the first four months of 2026 amounted to 275.8 billion ALL, a 28.9 billion ALL increase from the same period in the previous year. He believes that this performance is the result of a combination of enhanced fiscal administration, greater formalization of business activity, and economic expansion.
He observed that business turnover increased by 133 billion ALL, or 11%, from the previous year during the January–April 2026 period, in relation to business activity. The services sector experienced the most significant growth, with a rate of 24.5%. Construction and trade followed, with rates of 13.2% and 10.4%, respectively. Economic growth, increased domestic consumption, and more comprehensive reporting of business activity were the driving forces behind these developments.
The country’s total number of active businesses amounted to 144,940 by the end of April 2026, and 8,070 new businesses were registered during the first four months of the year, representing an 11% increase from the same period in 2025. This, according to the minister, indicates a more favorable business climate, increasing entrepreneurial confidence, and the expansion of economic activity across a variety of sectors, with a particular emphasis on services and transportation.
In comparison to the first four months of 2025, tax and customs revenues increased by 5.4% to 172.7 billion ALL. The results were bolstered by the implementation of the medium-term revenue strategy and enhancements in tax and customs administration.
An additional positive indicator was the increase in social and health insurance contributions, which amounted to 66.8 billion ALL, a 12.5% increase from the previous year. This development is indicative of the social insurance system’s sustainability, as it is a result of the increasing wages and the expansion of formal employment.
Minister Malaj also emphasized that Albania’s inflation rate remains among the lowest in the region. In April 2026, inflation was 2.8%, which was lower than the average of 5% in the Western Balkans and 3.2% in the European Union. He believes that this is a critical metric for the preservation of the purchasing power of citizens and the stability of the macroeconomic environment.
The conference also disclosed the outcomes of the real estate revaluation procedure, which resulted in 3.9 billion ALL in revenues alone in March and April 2026. It is anticipated that the process will generate even higher revenues prior to its completion due to the strong public interest.
In the first quarter of 2026, local authorities collected 17.2 billion ALL, which is 188% more than the same period last year, in relation to local government finances. This increase signifies a substantial enhancement of the financial autonomy of municipalities.
The infrastructure impact tax was the primary contributor, generating 11.08 billion ALL in revenues, a 9.1 billion ALL increase from the first quarter of 2025. Strong investment dynamics in the construction sector, particularly in urban and tourism areas, were evident in the municipalities of Tirana, Vlora, Himara, and Saranda, where the largest increases were recorded. In the same period, property tax revenues increased by 27% compared to the first quarter of 2025, reaching 1.81 billion ALL. This revenue remains one of the most significant sources of financing for local administrations.
During the first quarter of the year, local government expenditures amounted to 17.1 billion ALL, a 9.9% increase from the previous year. Capital expenditures experienced the most significant growth, increasing by 31% to $2.23 billion ALL.
Minister Malaj concluded that Albania’s economic foundations have been fortified by the strong performance of local government finances, expanding economic activity, formalization of the labor market, and rising budget revenues. This has created more opportunities for public investment and improved services for citizens.