Albania’s economy grows 4.1% in 2024 despite global uncertainties

In an increasingly volatile world, Albania has managed to maintain economic stability. According to the latest report from the Bank of Albania, the country’s economy expanded by 4.1% in 2024, defying global difficulties and sustaining strong growth momentum.

Why is this important: Economic resilience boosts investor confidence and strengthens Albania’s prospects amid regional and international challenges. Sustained growth also translates into tangible improvements in employment, incomes, and financial stability.

Context: The main drivers of growth were domestic consumption, private investments, and an exceptionally strong tourism season, according to the central bank.

In the labor market, the figures are encouraging. Unemployment has declined, and wages have risen significantly, contributing to greater household welfare and consumption capacity.

Another key positive development was the decline in inflation combined with a stronger Lek. These trends allowed the Bank of Albania to ease monetary policy, supporting further credit expansion and investment growth.

The banking sector remains healthy, with high capitalization levels and record profitability, ensuring it can continue supporting economic activity.

However, risks remain. Trade tensions, geopolitical conflicts, and international uncertainties continue to pose real threats to future stability.
The Bank of Albania has urged authorities to maintain strong financial reserves and manage risks carefully to ensure that Albania stays on a stable growth path amid global turbulence.

What’s next: Authorities and policymakers are expected to maintain cautious but supportive economic policies, balancing growth promotion with risk mitigation to safeguard Albania’s economic progress in an unpredictable global environment.