Dynamism of the services sector in the second quarter of 2025

The quarterly data from INSTAT indicate that the services sector in Albania continued to grow during the second quarter of 2025, with positive performance across most key activities, reflecting a revival in consumption and economic activity following challenges in previous periods.

Net Sales Volume
The strongest annual growth was recorded in hotel-related activities (14.5%), real estate (11.1%), and transportation, storage, and postal services (10.4%).

Bar-restaurant activities and information and communication saw growth of 9.1% and 8.4%, respectively.

Wholesale and retail trade, legal and accounting services, architecture and engineering, as well as travel agencies experienced more moderate growth, reflecting steady but slower expansion.

These results show a consolidation of demand in tourism, transport, and professional services, while trade and administrative activities maintain more balanced growth.

Employment in the Services Sector
The employment index reflects overall expansion, with the highest increase in hotels (8.7%), following the trend of rising tourism activity and demand for accommodation services.

Transportation, storage and postal services, real estate, and travel agencies recorded moderate employment growth, while some activities, such as insurance and investigation, showed a slight decline (-0.7%).

The wholesale/retail and vehicle repair sectors registered a 2.3% increase in employment, reflecting moderate capacity expansion to meet demand.

This indicates that sales volume growth is often accompanied by workforce expansion, especially in sectors with higher demand, such as tourism and transport.

Wage Index
The most significant wage increases were recorded in:

• Hotels: +25.2%, reflecting competition for qualified staff and strengthening tourism capacity.
• Real estate: +18.4%
• Wholesale/retail trade and vehicle repair: +16.1%
• Travel agencies: +12.5%
• Bar-restaurants: +12.0%

Wage growth suggests substantial investment in human resources and efforts to improve motivation and productivity, reflecting the need to retain qualified staff in high-demand activities.

Key Trends and Interpretation
The services sector is experiencing steady expansion, with tourism, transport, and real estate as the main growth drivers.

Professional activities such as information and communication, legal and accounting, and architecture/engineering contribute moderate growth, enriching the portfolio of services offered in the economy.

Wage increases across most sectors indicate efforts to retain and attract qualified personnel, a key factor in maintaining service quality and increasing productivity.

Quarterly indicators show that the services sector in Albania maintains strong momentum, with a combination of growth in sales volume, employment, and wages. Sectors related to tourism and real estate demonstrate stronger performance, suggesting that the services economy is being strengthened by consumption and workforce investment.

This provides a positive outlook for upcoming quarters, reflecting a revival of economic activity following more challenging periods.

For more information and detailed data, visit the INSTAT page: Services.