Albania’s economy continues to show resilience as it heads into 2025, with growth projected at 3.4%, according to the latest update from the World Bank. The forecast reflects a modest acceleration from 2024, driven largely by strong private consumption, a booming tourism sector, and an uptick in construction activity.
In its Western Balkans Regular Economic Report, the World Bank highlights Albania’s ability to maintain economic momentum despite global uncertainties. One of the key contributors to this growth is tourism, which has seen record-breaking numbers in recent years and remains a vital pillar of the economy. At the same time, increased domestic demand and a solid construction sector are helping to drive private investment and job creation.
The labor market has also responded positively. Employment levels—particularly in the private sector—have been rising, with more Albanians entering the workforce and fewer people living below the poverty line. In fact, poverty is estimated to have declined to 11.8% in 2023 and is expected to continue falling through 2025.
Despite these encouraging trends, the World Bank cautions that risks remain. Global inflationary pressures, fluctuating energy prices, and ongoing geopolitical tensions could pose challenges. The report recommends that Albania maintain a disciplined fiscal policy and continue reforms to improve public investment management, enhance transparency, and strengthen social safety nets.
Overall, the outlook remains optimistic. With solid economic fundamentals and support from sectors like tourism and construction, Albania is on a path of moderate but steady growth—welcomed news for both policymakers and citizens alike.