EBRD holds Albania’s 2024 economic growth f'cast at 3.3%

Tourism growth of 41% in the first two months of 2024 indicates a potential boost in private consumption, while the stabilization of the lek currency against the euro could support export growth, which fell some 10% last year due to the local currency appreciation, the EBRD said in its May 2024 Regional Economic Prospects report.

“On the other hand, risks to growth arise from a possible drought negatively affecting agricultural output and electricity supply, with a significant downside risk to GDP given the relatively large contribution of agriculture (still close to 20 per cent) and the high share of hydropower in electricity generation (99 per cent of net domestic production),” the EBRD said.

In 2025, the EBRD expects the Albanian economy to expand by 3.5%, in line with the expected global recovery.

"Inflation continued to ease in the past year, reaching a two-year low of 2.3 per cent in March 2024, and the authorities expect it to stay around the target band in 2024 and beyond," the bank noted.

In the EBRD's region of Western Balkans where Albania belongs, the EBRD expects economic growth to accelerate to 3.3% this year from 2.5% in 2023, slightly cutting its previous projection of 3.4% growth, as inflation moderates and construction activity increases throughout the region.

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