Albania’s GDP climbs 3.7% in Q1 2026, led by public sector and consumption

Albania’s Gross Domestic Product expanded by 3.71 % in real terms in the first quarter of 2026, according to INSTAT data. The surge was driven primarily by the “Public Administration, Education and Health” cluster, which added 1.68 percentage points, followed by gains in real estate (+0.52 pp), professional services (+0.47 pp), construction (+0.32 pp) and trade‑related services (+0.21 pp). Final household consumption grew 3.94 % while government consumption fell 1.36 %.

Exports rose 9.36 % and imports 7.39 %, but the industrial, energy and agricultural sectors continued to contract, lowering overall productivity. Analysts warned that the growth model remains consumption‑heavy and not sufficiently productive, stressing the need for structural reforms, diversification and higher export value‑addition.

In parallel, the Albanian government approved a 2026 budget amendment that reallocates roughly 17 billion lek to pensions, health, defence and other social programmes, aiming to cushion inflation impacts and reinforce public services.