Minister of Economy and Innovation Delina Ibrahimaj said Albania’s economy grew by 3.71% in the first quarter of 2026. As a result, growth remained above the Western Balkans average of 3.6% and well above the EU average of 1%.

At the same time, she said key sectors drove economic expansion. For example, public administration, health, education, professional services, construction, and real estate all contributed positively.

However, she noted that agriculture, forestry, and fishing fell by 0.49%. In this sector, livestock and fishing declined, while crop production increased by 8.7%. Meanwhile, exports from agriculture continued to show strong performance.

In contrast, industry recorded a decline of 2.17%. This happened mainly due to weaker extractive industries and textiles. Nevertheless, electricity production and food processing increased during the same period.

In terms of structure, services dominated the economy with 49.6%. After that, agriculture accounted for 15.5%, while construction stood at 10.7% and industry at 10.2%.

Overall, Ibrahimaj said macroeconomic indicators show stability. Therefore, she argued that the economy demonstrates resilience against future shocks.

At the same time, public debt fell to 48.8% in the first quarter, down from 54.1% a year earlier. This marked a significant improvement in fiscal indicators.

In addition, foreign direct investment continued to rise. FDI reached €400 million in Q1 2026, up 11.9% compared to the same period in 2025. Meanwhile, the total stock of FDI climbed to €17.4 billion, increasing by 12.2% year-on-year.

Similarly, foreign exchange reserves increased to €7.6 billion, up 12.5%. Ibrahimaj said this indicator reflects stronger economic stability and greater resilience to global shocks.

Furthermore, she said Austria led foreign investment inflows with €60 million. It was followed by Italy with €49 million, the Netherlands with €48 million, and also Turkey and Kosovo.

In terms of sectors, real estate attracted 42.5% of total FDI. Next came financial and insurance activities with 16.8%, while energy, water, and gas accounted for 9.4%.

Finally, Ibrahimaj said 9,591 new businesses were registered in the first five months of 2026. As a result, business turnover increased by 9.3%, reaching 142.8 billion ALL more than the same period last year.

/a.c/