Albania’s economy shows steady optimism in October, despite cautious consumers

Albania’s economic sentiment improved in October, with businesses reporting greater confidence across key sectors, according to the latest survey from the Bank of Albania.

Why is this important: The economic sentiment index rose by 1.9 points, standing nearly 9 points above the historical average — a strong sign of resilience despite global uncertainties. Improvements in trade, industry, and construction are driving the trend, offering a potential boost for employment and investment in the months ahead.

Context: The survey highlights a rise in business confidence, especially in the industrial, construction, and trade sectors.  In industry, companies reported more export orders and anticipate higher employment and price increases in the near term. Construction also gained ground, driven by new projects and increased activity. Meanwhile, trade recorded a notable improvement due to more positive expectations for business performance and hiring.

However, sentiment in the services sector and among consumers remained more subdued.
Consumer confidence dipped slightly, with households expressing greater uncertainty about their financial situation and the national economy. Spending on major purchases has slowed, although expectations for continued price increases remain elevated.

What else: Despite mixed signals, the October snapshot reflects an economy maintaining steady momentum, with businesses showing cautious optimism and consumers proceeding more carefully in their financial choices.
Policymakers are likely to watch household spending closely in the months ahead, as it remains a key component of economic stability.