Albanian economic growth and fiscal performance

Albania has demonstrated positive economic indicators across several sectors during 2026. In the first seven months of the year, agricultural exports reached approximately 380 million euros, a 2.3% increase compared to the previous year, driven by improved product quality and expanded greenhouse cultivation. Additionally, retail trade volume rose by 6.8% in the second quarter, supported by increased consumer purchasing power and the tourism season.

By August 2026, state revenues reached 557.6 billion lek, an 11.7% increase year-on-year that exceeded budget projections, achieving 100.1% of the planned amount. This fiscal growth was bolstered by a 7.6% rise in tax and customs revenues, with tax administration revenues—including VAT, profit tax, and personal income tax—totaling 191.6 billion lek. Net VAT collection specifically increased by 24.2% compared to the same period in 2025. During this same eight-month period, public spending reached 496 billion lek, representing 95.6% of the planned budget execution.

Data from INSTAT indicates the economy grew by 3.61% in the second quarter of 2026 compared to the previous year. This expansion was primarily driven by public administration, education, and healthcare, which added 1.38 percentage points to GDP. Other contributors included trade, transport, accommodation, and food services (0.98 percentage points), real estate (0.36 percentage points), and construction (0.15 percentage points). Conversely, the agriculture, forestry, and fishing sector declined by 2.29%, contributing negatively to growth by 0.38 percentage points. Other contracting sectors included professional and administrative services and arts and entertainment activities.