TIRANA, Feb 27 /ATA/ – The European Bank for Reconstruction and Development (EBRD) expects Albania’s gross domestic product (GDP) to grow by 3.7% year-on-year in 2025, maintaining its last February forecast. 

In its latest report released on Thursday, EBRD said that Albania’s 3.9% growth in 2024 was higher than the Bank’s forecast in September 2024 driven by positive performance of tourism, services and construction sector, although industrial and agricultural output have declined. 

EBRD also noted that expansion of private consumption and public investments also supported growth, whereas inflation rate fell averagely to 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% in beginning of 2024. 

The country’s financial sector remained stable and liquid with increased lending activity. 

EBRD underlined that continued structural reforms, a strong commitment to European Union membership, and the potential to absorb more EU funds and financing will support further growth.