TIRANA, Sept. 24 /ATA/ – The European Bank for Reconstruction and Development (EBRD) raised its forecast for Albania’s economic growth in 2026 to 3.5% from 3.4%, citing reforms and investment linked to the country’s European Union accession process.

The EBRD said in its latest report that Albania’s economy grew 3.8% in

2025 and maintained strong momentum at the start of this year, expanding 3.7% in the first quarter, driven particularly by public administration, construction and real estate.

The country’s external position also improved, with a narrower current account deficit, while record tourism revenues and strong remittances continued to support the economy. Foreign direct investment rose 11% year-on-year in the first quarter.

Public finances also strengthened. The budget moved into surplus in the first half of the year, following a deficit equivalent to 1.8% of GDP in 2025, while public debt fell to 49% of GDP by mid-year.

Credit growth remained strong and asset quality in the banking sector improved. The EBRD said these developments, together with investment and reforms linked to EU integration, would support economic growth in the period ahead.

The bank also flagged risks to the outlook, including competitiveness pressures, climate-related risks and volatility in energy prices.

Across the Western Balkans, the EBRD expects economies to grow by an average 3% in 2026 and 3.5% in 2027. Albania is forecast to grow 3.5% in both years.

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