Governor of the Bank of Albania, Gent Sejko, stated today that the country’s economic activity grew by about 3.7% last year, according to INSTAT data and projections from the Central Bank.

First, economic expansion was supported by rising household consumption, private sector investments, and increased exports of services. The services and construction sectors expanded, while agriculture and industry continued to contract. Fiscal policy remained consolidating, and goods exports declined.

Next, Sejko highlighted that growth trends and the structure of economic activity are expected to continue in the same pattern during the first quarter of 2026. Factors such as healthy private sector balances, strong household and business confidence, tourism revenues, and favorable financing conditions will support sustainable growth in economic activity, employment, and wages.

Furthermore, the Bank of Albania projects that inflation will gradually return to target during 2026, while the Albanian economy is expected to continue growing at solid rates in the coming years.

However, the governor warned that geopolitical conflicts in the Middle East remain a major risk for both the global and domestic economy. Rising energy prices and possible supply disruptions could negatively affect inflation and economic growth in the future.

Finally, Sejko concluded that recent economic, monetary, and financial developments show that the economy continues on a positive growth path, creating optimistic prospects for 2026.

/a.c/