The International Monetary Fund (IMF) has raised its forecast for Albania’s economic growth in 2026 from 3.4% to 3.5%. Its latest World Economic Outlook also projects inflation at 3.2% this year.

The IMF expects Albania’s economy to grow by 3.2% in 2027. Meanwhile, it forecasts inflation at 3.2% for the same year.

The report also projects a narrower current account deficit. It expects the deficit to fall to 2.1% of gross domestic product in 2026 and 2.5% in 2027. The IMF also expects unemployment to remain at 8.7% in both years.

Globally, the IMF forecasts economic growth of 3.1% in 2026 and 3.4% in 2027. However, it warns that geopolitical conflicts, commodity price fluctuations and financial market uncertainty continue to pose risks. It also projects global inflation at 4.7% this year before easing to 4.1% in 2027.

The fund stresses the need to maintain price stability, strengthen fiscal buffers and implement structural reforms to better withstand potential economic shocks.

/a.p./