Albania’s economy grew by 4.06% in Q2 2024
Albania’s economy continued to expand in the second quarter of 2024, growing by 4.06% compared to the same period in 2023. This growth was driven by several key sectors, including construction, tourism, and services, as highlighted in the latest report by the Institute of Statistics (INSTAT). The report, presented by INSTAT Director Elsa Dhuli, underlined the positive impact of these sectors on overall economic performance, contributing to a solid recovery and continued expansion following the challenges of recent years.
Why does it matter: Economic growth of this magnitude reflects a strengthening economy that can create more jobs, attract investment, and support social programs. Moreover, sectors such as construction, tourism, professional services and financial and insurance sectors, which saw significant gains, are key to sustaining this growth in the future.
One of the main contributors to this growth was the construction sector, which saw a 10.10% increase in activity. Construction projects across the country, ranging from residential developments to infrastructure improvements, have boosted both employment and investment. Government-led infrastructure improvements also played a role in stimulating the sector, further boosting job creation and capital inflows. Alongside this, the tourism sector played a pivotal role, with increased activity in trade, accommodation, and food services. This surge is partly attributed to Albania’s growing popularity as a travel destination, particularly during the summer months.
The INSTAT report also highlighted positive growth in professional services and administration, with a 9.58% increase, and the financial and insurance sectors, which grew by 8.71%. Despite these gains, some sectors, such as industry and energy, experienced declines, with industry contracting by 8.91%. Fluctuating demand and outdated infrastructure were key factors in this decline. Nevertheless, overall economic momentum remains strong, with total exports rising by 4.89% and imports increasing by 5.64%, indicating robust trade activity.
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