Albania business outlook 2025

Business Registry data according to the standards of European Business Statistics show that the Albanian economy has continued the process of expanding its entrepreneurial base during the period 2021–2025. The number of active legal entities has grown at a steady pace, while the formalization of economic activity has particularly included the agricultural sector. However, beyond the numerical growth of businesses, the data reveals deeper structural transformations related to the territorial concentration of economic activity, the size of enterprises, and the capacity of the Albanian economy to approach European Union standards.

Business dynamics (2021–2025)

Indicator	2021	2025	Change
Active legal entities	209,591	250,097	+19.3%
Farmers with NIPT	62,922	112,205	+78.3%
Active enterprises	118,627	137,892	+16.2%
Active local units	128,263	146,527	+14.2%

The increase in the number of active units demonstrates a continuous expansion of economic activity in the country. The most notable element is the formalization of farmers, whose number has increased by over 78 percent during the analyzed period. This trend indicates the strengthening of formal registration of agricultural activity and increased access to national and European support schemes.

However, formalization should not be confused with productivity growth.
While the registration of farmers represents an important step toward market integration, productivity improvement requires investments in technology, mechanization, quality standards, and integration into European value chains.

Territorial concentration of economic activity

One of the most significant findings of the analysis is the strong regional concentration of Albanian business activity.

Enterprises by county

County	Number of enterprises	Share of total
Tirana	63,212	47.8%
Durrës	13,820	10.5%
Vlorë	10,691	8.1%
Fier	9,649	7.3%
Elbasan	7,567	5.7%
Shkodër	6,511	4.9%
Korçë	6,086	4.6%
Lezhë	4,447	3.4%
Berat	4,003	3.0%
Gjirokastër	2,591	2.0%
Dibër	2,202	1.7%
Kukës	1,393	1.1%

The data show that almost half of the active enterprises in Albania are located in the Tirana region.
When Durrës and Vlorë are added to this county, it results that around two-thirds of the country’s entrepreneurial activity is concentrated in only three counties.

This economic configuration shows that Albania continues, even in 2025, to develop according to a territorially centralized model, where investments, human capital, financial services, and economic infrastructure gravitate mainly toward the Tirana–Durrës corridor.

At the regional level, the Central Region represents more than half of all national entrepreneurial activity.

Regional distribution

Region	Share of total
Central Region	53.6%
Southern Region	25.0%
Northern Region	21.5%

This distribution shows that the main development challenge for the Albanian economy is no longer the lack of economic activity, but the territorial inequality of this activity.

Sectoral structure

Sector	Share of enterprises
Services	86.0%
Goods production	14.0%

The Albanian economy continues to be dominated by service activities.
However, the goods production sector represents a much greater economic importance than its numerical weight suggests.

While only 14 percent of enterprises operate in goods production, they generate nearly one-third of total economic turnover. This ratio shows that production, industry, construction, and agro-processing remain the sectors with the greatest potential for productivity and export growth.

In the perspective of European integration, these sectors can become the main engines of economic convergence.

Enterprise size and structural gap

Enterprise size structure

Category	Share of enterprises	Share of employment	Share of sales
Micro	98.5%	51.4%	55.2%
Large	1.5%	48.6%	44.8%

The structure of Albanian businesses continues to be dominated by micro-enterprises. However, the analysis of employment and sales reveals a much more complex reality.

Only 1.5 percent of enterprises are considered large, but they provide almost half of the jobs and generate approximately half of the economy’s turnover.

This result shows that the main problem is not the lack of entrepreneurship. On the contrary, the challenge lies in the absence of a broad layer of medium-sized enterprises that manage to grow and compete in international markets.

The Albanian economy is characterized by the presence of many small businesses and relatively few businesses that manage to scale. This is one of the key gaps that separates Albania from European Union economies.

Foreign investment and economic integration

Foreign capital presence

Indicator	Value
Enterprises with foreign or joint capital	5.3%
Italy share	41.8%
Kosovo share	8.3%
Turkey share	6.5%

The participation of foreign capital remains relatively limited.
Although Italian investors clearly dominate the presence of foreign capital in Albania, the overall level of enterprises with foreign capital remains modest.

This situation suggests that the country still has untapped potential for attracting investments in higher value-added sectors. Increasing investments in industry, technology, logistics, and professional services would be one of the most effective mechanisms for accelerating convergence with the European Union.

Perspective of convergence with the European Union

The data analysis shows that Albania has made significant progress in formalizing economic activity and expanding the business base. However, convergence with the European Union will not be determined by the number of registered enterprises, but by the economy’s ability to increase productivity, foster innovation, and create competitive enterprises in international markets.

Three main challenges remain: the territorial concentration of economic activity, the lack of medium-sized enterprises, and the still limited level of integration into European value chains.
In this context, Albania is slowly transitioning from the formalization phase to the structural transformation phase. If the period 2015–2025 can be considered the decade of formalization, then the period 2026–2035 should become the decade of productivity, innovation, modern industrialization, and balanced regional development. If this is achieved, it can be said that through this transformation, real convergence with the European Union economy will be possible.