World Bank: Albania economy to grow 3.4% driven by tourism

The World Bank projects that the economy of Albania will grow by 3.4% this year, mainly driven by tourism.

However, the institution warns that the conflict in the Middle East remains a major risk that could slow economic growth. It calls for stronger structural reforms to sustain the current momentum.

Massimiliano Paolucci, Head of the World Bank in Albania, said the country continues to show resilience. He stressed that maintaining this progress requires bold reforms. He highlighted the need to accelerate EU integration efforts, increase investment in human capital and digital infrastructure, and mobilize private capital.

The report forecasts growth of 3.4% in 2026 and 3.7% in 2027 for Albania.

The World Bank also notes improvements in unemployment and public debt levels, while identifying a shortage of skilled labor as a key challenge.

Albania’s economy continues to grow, supported mainly by services and construction, especially tourism. Inflation remains below the central bank target, while public debt decreases to 53.2% of GDP by the end of 2025. The current account balance also improves, driven by strong tourism exports.

Despite these positive trends, the report warns that Albania still faces high emigration levels. It also notes that growth in the Western Balkans is expected to remain slow due to external risks, inflation, and global uncertainty.

/a.c/

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