Albania’s economy is expected to expand by 3.7% in 2025, the European Bank for Reconstruction and Development (EBRD) said on Thursday, maintaining its forecast from February.
In its latest report, the EBRD noted that Albania’s economy grew by 3.9% in 2024, exceeding its September projection, driven by strong performances in tourism, services, and construction. However, industrial and agricultural output declined.
Private consumption and public investment also supported growth, while inflation averaged around 2.2% in 2024, allowing the Bank of Albania to cut its key interest rate to 2.75% in February 2025 from 3.25% at the start of 2024.
The financial sector remained stable and liquid, with increased lending activity.
The EBRD said structural reforms, Albania’s EU membership aspirations, and greater absorption of EU funds and financing would support further economic expansion. /BV