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EBRD: Albania's economic growth at 3.5% for 2025 and 2026

2025-09-26 18:44:00, Ekonomi CNA

EBRD: Albania's economic growth at 3.5% for 2025 and 2026

The European Bank for Reconstruction and Development has kept its forecast for Albania's economic growth unchanged at 3.5% for 2025 and 2026. This reflects expectations for a stable economic performance, despite pressures from the external environment and internal factors.

The EBRD's Regional Economic Outlook report estimates that in the first quarter of 2025, the economy grew by 3.4%, driven mainly by services and construction, while agriculture and industry contracted slightly. Inflation remained low, with the annual rate at 2.3% in August.

In response, the Bank of Albania cut the key interest rate to 2.5% in July, the third cut since the summer of 2024.

"The main risks to the Albanian economy are related to the possibility of a slowdown in demand in the Eurozone, a decrease in remittances, and climatic factors such as drought, which could negatively affect both agriculture and electricity production. On the other hand, structural reforms and progress towards EU integration remain a potential source of strengthening the growth outlook," the report says.

The Albanian economy remains on a stable trajectory, with positive expectations for 2026 and beyond./ CNA

 

 

 

 





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