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Albania's Economic Outlook/IMF: In 2026, GDP will grow by 3.6%, inflation will reach 3%.

2025-11-20 15:21:00, Ekonomi CNA

Albania's Economic Outlook/IMF: In 2026, GDP will grow by 3.6%, inflation

A report prepared for Albania by the International Monetary Fund shares some important projections regarding the country's economic outlook.

According to the report, inflation is projected to gradually increase from 2.2% in 2025 to the 3% target in the second half of next year.

Real GDP for 2026 is projected to grow by 3.6%, driven by acceleration in the eurozone's main trading partners.

The report emphasizes that geopolitical tensions, trade and commodity price volatility will be influential factors for Albania's economic situation.

“Tourism-led growth and Albania’s macroeconomic outlook are expected to remain strong. After an average growth of around 41⁄4 percent in the post-pandemic period, real GDP is projected to grow by 3.5 percent in 2025, mainly driven by private consumption, and 3.6 percent in 2026, reflecting a modest acceleration in growth in the euro area’s main trading partners. The direct effects of US tariffs are minimal, while the indirect effects from global trade measures and uncertainty so far appear limited.

Despite some moderation, tourism continues to provide a steady support for economic output. Inflation is projected to gradually increase from 2.2 percent in 2025 to the 3 percent target in the second half of 2026, amid a tight labor market and rising wages. The current account deficit is projected at 2.8 percent of GDP in 2025 and to gradually widen to around 3.5 percent of GDP in the medium term, as disposable income and public capital spending boost imports.

"The balance of risks to the outlook has shifted to the downside, amid a more turbulent external environment. Geopolitical tensions, escalating trade measures, commodity price volatility, and prolonged uncertainty could affect Albania's main trading partners and weaken external demand," the report said. /CNA





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