January 23, 2025 — Albania's economy is expected to grow at a slower pace in the next two years. The World Bank forecasts a 3.5% growth for 2025, dipping slightly to 3.3% in 2026.
After a slowdown since 2022, Albania's economic growth reached 3.7% in 2024, but projections for the future have shifted. While forecasts for 2025 improved by 0.1%, those for 2026 worsened by 0.2%.
In the wider Western Balkans region, Kosovo and Serbia are expected to lead with the highest economic growth. Meanwhile, Albania’s neighbors, including Bosnia, Montenegro, and North Macedonia, are set to see improvements similar to its own.
The past year was positive for Albania. Inflation dropped to 2.2%, and public and foreign debt reached their lowest levels in over a decade. Low interest rates and proactive banking policies boosted credit growth by 16%, providing a solid foundation for the economy.
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