Credit surge in key sectors supports Albania’s export growth

New data from the Bank of Albania shows that credit from second-tier banks is increasingly being directed toward the most productive and profitable sectors of the economy—a trend that is closely tied to the country’s export growth.

Why this is important: The increase in lending is not only helping businesses fund investments and expand to new markets but is also contributing to a rebound in Albanian exports, particularly in sectors hit hard by currency fluctuations and shifting global trade conditions.

Context: According to official figures, credit to manufacturing enterprises grew by 13.6%, while lending to the wholesale and retail trade sector increased by 13.4%. Energy and food services saw even sharper rises—39.5% and 23.5%, respectively. The increased credit allocation has helped businesses recover from earlier euro depreciation shocks and take advantage of favorable geopolitical and trade conditions in Europe.

Expert view: Economic analysts attribute the growth to business models that rely heavily on reinvestment and credit financing, rather than immediate profit distribution. They caution, however, that sustained credit-driven growth requires accompanying long-term risk mitigation policies. Shifting global tariffs and supply chain reorganizations are also flagged as ongoing risks.

What’s next: Export demand for Albanian-made garments and footwear is beginning to revive. After a 17% annual drop in 2024, the decline narrowed to 5% in the first quarter of 2025. If credit expansion is maintained and supported by strategic planning, Albania’s export-oriented industries may enter a new phase of sustainable growth.