The head of the World Bank in Albania stated that the Albanian economy continues to demonstrate resilience, but in order to sustain this pace and turn it into long-term development, faster reforms and greater investment in human capital are required.
Speaking during the presentation of the regional economic report, Emanuel Salinas Paolucci emphasized that the main challenges are related to increasing productivity and broader participation in the labor market, at a time when the country is facing a shrinking workforce.
“Albania’s economic growth is expected to slow down, as higher energy prices and trade disruptions linked to the situation in the Middle East are negatively affecting purchasing power. Maintaining the economic growth trend, in conditions where the labor force is shrinking, requires mobilizing underutilized human capital through reforming benefit schemes, easing childcare constraints, strengthening vocational training, and expanding employment opportunities for youth and women,” he said.
According to the institution’s projections, Albania’s economic growth for 2026 is expected to be 3.4%, while in 2027 it is projected to reach 3.7%. However, these estimates remain sensitive to global developments, including the prolongation of conflicts in the Middle East.
According to the report, current growth has been mainly supported by services and construction, with tourism being one of the key drivers of the economy. Meanwhile, inflation has remained below the target of the Bank of Albania, and public debt has continued to decline, falling to 53.2% of GDP by the end of 2025.
“Albania remains one of the countries in the region with the highest emigration per capita, and those who stay face ongoing barriers in the labor market. Caregiving and family responsibilities keep women out of the labor market, especially those aged 25–54, while youth unemployment stands at 21.5%, above the EU average of 14.7%. Albania’s economy continues to show resilience, but maintaining this momentum requires bold structural reforms. The way forward is clear: accelerating reforms toward EU membership, increasing investments in human capital and digital infrastructure, and mobilizing private capital will boost investment, create jobs, and accelerate convergence with the EU,” the Regular Economic Report for the Western Balkans states.
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