Report on Albania’s Economic Growth in 2024 and scenarios for 2025

As part of the analysis of Albania’s economic performance during 2024 and the outlook for 2025, our report offers an in-depth overview of the key factors that influenced GDP growth, along with the challenges and opportunities that may arise for the near future of the Albanian economy.

According to the report, based on the analysis of quarterly growth indicators published by INSTAT:

• The Albanian economy recorded stable growth in 2024, estimated at 3.96%. However, it is clear that this growth remains uncertain and largely dependent on external factors and public spending policies. Despite some strong performance in service sectors, concerns in the industrial, agricultural, and energy sectors are evident and call for greater efforts to diversify and modernize the economy.

Looking ahead, Albania must focus on building a more sustainable economy, not solely reliant on state aid, but also on developing other resilient sectors with long-term potential. Investments in innovation, digitalization, and infrastructure will be essential to achieving balanced and sustainable growth.

The report identifies several possible scenarios for 2025, including:

• Sustainable growth scenario, which could be achieved through investment in infrastructure and digitalization, alongside efforts to diversify production sectors and exports.
• Growth decline scenario, which may materialize if productive sectors fail to improve productivity and diversify growth sources.
• Fiscal crisis and trade deficit scenario, which could lead to a potential fiscal crisis and increased external debt, due to the country’s high dependency on imports and a widening trade deficit.

The report highlights the urgent need for decisive steps to ensure a positive trajectory in 2025, including significant investments in technology and innovation, support for exports, and improvements in infrastructure development. These measures will help Albania attain more sustainable growth and maintain economic stability in the coming year and beyond.

The media and readers are encouraged to follow future developments closely and contribute to the public dialogue on the opportunities and challenges that lie ahead for Albania’s economy.

For more information and access to the full report, please refer to our publications section.