Economic Monitor Albania

WA 1 | April 2025

Economy grew by 4% in 2024
Drivers of growth: private consumption, but also higher investment
Inflation is down to 2.2% in 2024; tight monetary policy and lek-appreciation support disinflation
With an average salary of EUR 769 (in 2024), ALB has the second lowest wage level in the region
Current account deficit widened moderately to 2.4% of GDP in 2024, mainly driven by an expansion of the goods trade deficit
Remittances remained stable at 4.2% of GDP in 2024, after decreases in 2022 and 2023
High FDI inflows, FDI stock increased markedly
Fiscal deficit estimated to increase to 2.5% of GDP in 2025
Significant room for higher VAT revenues

Business climate. Clear improvement in legal framework, but implementation lags; GET study with recommendations to close this gap