Albania leads Europe in construction and food spending relative to GDP

Recent economic data highlights several significant trends in Albania. According to Eurostat, the construction sector accounted for 12.6% of Albania's GDP in 2025, which is approximately 2.5 times the European Union average. This makes Albania a leader in construction relative to its economy, surpassing Romania (8.6%) and Kosovo (7.8%).

In terms of household spending, Albania recorded the highest proportion of food expenditure in Europe relative to its economy. In 2025, food costs represented 20.4% of the national GDP, compared to the EU average of 6.2%. This high ratio is attributed to lower income levels, where a significant portion of family budgets is dedicated to basic necessities like dairy, oils, and vegetables.

Financial indicators also show challenges with informality. Data indicates that approximately 5.6 billion euros in cash circulated outside the banking system in July, marking a record level. The Bank of Albania has noted that the dominance of physical cash creates difficulties for financial traceability. Additionally, while housing loans reached a historical high of 658 million euros in 2025, the growth of new mortgage lending has begun to slow down in the first half of 2026.