U.S. State Department report praises Albania’s growth, notes persisting investor challenges

The U.S. State Department’s 2025 Investment Climate Statement highlights Albania’s steady economic growth as a key factor in attracting foreign investment. The report cites 4% GDP growth in 2024, driven by tourism, real estate, and prudent macroeconomic policies, as evidence of a stable and resilient economy.

Why is this important: This is Washington’s official assessment of Albania’s business climate and signals confidence in its trajectory — but it also underlines the need for structural reforms to address labor shortages, property rights disputes, corruption, and illicit financial flows that distort competition.

Context: The report warns that continued emigration of skilled workers is shrinking the labor force and could limit future investment. It also flags challenges from tax evasion, smuggling, and weak contract enforcement, which undermine fair competition.

At the same time, the State Department commends Albania’s progress in digitizing public services, improving fiscal transparency, and strengthening its legal framework for foreign investment, which is aligned with international standards and non-discriminatory toward foreign investors.

Judicial reform — including the vetting of judges and the creation of SPAK — is described as a cornerstone for improving the rule of law and long-term investor confidence. But the report notes that property rights remain a persistent challenge, and the use of public-private partnerships (PPPs) has limited competition in sectors like infrastructure.

Political reaction: Democratic Party leader Sali Berisha said the report confirms Albania faces “serious structural problems,” arguing that the government has failed to create conditions for serious Western investors.