Tirana, Albania

Albania’s economy to expand by around 4% in 2026 and tourism is one of the main contributors

Tourism continues to be one of the main sectors that will contribute to Albania’s economic growth in the coming years. Bank of Albania says that the country’s economy is expected to keep positive growth rates. It is projected to expand by around 4% in 2026.

The Director of Monetary Policy Erald Themeli, says that economic growth will be supported by private sector demand for consumption. It will also be driven by investment. Foreign demand will also contribute, especially in the tourism sector. This sector is becoming a stable pillar of the national economy.

According to him, the data for the fourth quarter of 2025 confirm positive trends, with an economic growth of 3.6%, a rate that remains close to the productive potential of the Albanian economy. Speaking about the inflation, Themeli stated that it has marked a slight increase to 2.4% during the third quarter, while it is expected to return to the 3% target in 2026. He considered the decision not to change the base interest rate appropriate, while maintaining monetary and financial stability.

The Bank of Albania also anticipates that lending will stay an important element for supporting investments. It will contribute to the further expansion of economic activity. Additionally, it will improve the business climate in the country.