TIRANA, Sept. 24 /ATA/ – The European Bank for Reconstruction and
Development (EBRD) raised its forecast for Albania’s economic growth
in 2026 to 3.5% from 3.4%, citing reforms and investment linked to the
country’s European Union accession process.

The EBRD said in its latest report that Albania’s economy grew 3.8% in
2025 and maintained strong momentum at the start of this year,
expanding 3.7% in the first quarter, driven particularly by public
administration, construction and real estate.

The country’s external position also improved, with a narrower current
account deficit, while record tourism revenues and strong remittances
continued to support the economy. Foreign direct investment rose 11%
year-on-year in the first quarter.

Public finances also strengthened. The budget moved into surplus in
the first half of the year, following a deficit equivalent to 1.8% of
GDP in 2025, while public debt fell to 49% of GDP by mid-year.
Credit growth remained strong and asset quality in the banking sector
improved. The EBRD said these developments, together with investment
and reforms linked to EU integration, would support economic growth in
the period ahead.

The bank also flagged risks to the outlook, including competitiveness
pressures, climate-related risks and volatility in energy prices.

Across the Western Balkans, the EBRD expects economies to grow by an
average 3% in 2026 and 3.5% in 2027. Albania is forecast to grow 3.5%
in both years.