ALTAX publishes the Analytical Report on Active Enterprises in Albania, 2015–2025

ALTAX – Center for Fiscal and Economic Research has published a new analytical report that documents for the first time, in an integrated manner, the evolution of active enterprises in Albania during the period 2015–2025. The report provides a systematic analysis of the economic structure, business productivity and employment dynamics, based on official data from INSTAT, DPT and the Bank of Albania.

2× GDP Growth 2015–2024

162,835 Active enterprises (peak 2018)

88% Micro-enterprises (< 5 employees)

~167k € Average GDP / business unit (2023)

What does the report show?

The analysis is based on four main dimensions: the number and dynamics of active enterprises over ten years; comparison with the growth of Gross Domestic Product (GDP); sectoral structure and size of businesses; as well as employment dynamics and average productivity per unit.

The report’s central finding is clear: the Albanian economy has almost tripled its nominal value in a decade – from 10.3 billion euros in 2015 to around 25 billion euros in 2024 – while the number of active enterprises has remained relatively stable. This divergence signals a strong increase in average productivity per business unit.

“Albanian GDP more than doubled, but the number of active enterprises remained stable, a clear signal of economic consolidation and average productivity growth.”

Three phases of transformation 2015–2025

The report identifies three clear phases of the structural transformation of the economy:

Fragmentation (2015–2018) with an economy with a high number of small enterprises, low average productivity and a dominance of self-employment. The peak is reached in 2018 with 162,835 active enterprises.

Transition (2019–2021), a period affected by the COVID-19 pandemic and the methodological correction of the INSTAT statistical register. The decline in the number of enterprises, to around 116,000 units in 2021, partly reflects statistical cleaning and not just real business closures.

Consolidation (2022–2025) with moderate expansion of the business base, driven by tourism, construction and urban services. GDP growth significantly exceeds the numerical expansion of enterprises, indicating productivity gains.

The structure of businesses shows the dominance of services and high fragmentation

About 86% of active enterprises operate in the services sector, mainly trade (35%), accommodation and restaurants (14%) and professional services (8%). Manufacturing and construction account for only 13–15% of the number of enterprises, but generate a disproportionate share of formal employment – ​​reflecting the labor-intensive nature of these sectors.

The size structure remains highly fragmented, where 51% of enterprises have no registered employees (family self-employment), and another 37% have 1–4 employees. Only 6% of enterprises have 10 or more employees, but this minority generates the bulk of production and exports.

Productivity +160% within eight years

One of the most significant findings of the report concerns the increase in average nominal productivity per business unit: from around 64,000 euros in 2015 to over 167,000 euros in 2023. This increase of over 160% within eight years reflects the expansion of tourism and high value-added services, business consolidation, economic formalization and the effect of nominal inflation.

The report emphasizes that this growth is mainly nominal and that real productivity – corrected for inflation – has more moderate dynamics. Total Factor Productivity (TFP) analysis is identified as a separate object of study.

“Over 88% of Albanian enterprises are micro-enterprises with less than 5 employees – structural fragmentation that limits innovation, access to finance and export capacity.”

Policy implications

The report draws out five main implications for public actors and decision-makers:

Industrial diversification, where the low weight of the manufacturing sectors (industry and construction) signals the urgent need for supportive policies that boost value added and product exports.

Economic formalization, where about half of active enterprises operate as self-employed without registered employees – a segment sensitive to fiscal reforms and important for expanding the tax base.

Support for medium-sized enterprises, where only 6% of enterprises have 10+ employees. Policies that promote the transition from micro- to small and medium-sized enterprises are critical for long-term growth.

Our statistical observation shows the methodological correction of INSTAT (2021–2022), which raises the need for a sustainable business register and methodologies harmonized with European standards.

Sectoral dependence: The economy’s concentration around tourism and trade creates cyclical vulnerability to external shocks – a risk that requires long-term diversification strategies.

The report “Evolution of Active Enterprises in Albania, 2015–2025” is available at ALTAX platforme. It has two versions (Albanian and English) and includes 10 analytical sections, 6 detailed tables and 5 original graphs. The report covers four dimensions: enterprise demography, nominal GDP, sectoral structure and employment dynamics.