Albania GDP Growth Hits Five-Quarter Low

The GDP in Albania expanded 3.75% year-on-year in Q3 2025, following a 3.5% rise in Q2. The largest upward contributions came from public administration, education and health (15%); trade, transport, accommodation and food services (2.6%); real estate (10.6%); construction (4.8%); professional and administrative services (2.1%); information and communication (10.4%); arts, entertainment and recreation services (4.1%); and financial and insurance (0.7%). On the other hand, a decline was seen in industry, electricity and water (-4.8%); and agriculture, forestry and fishing (-1.7%). On the expenditure side, household consumption rose 1.3%, investment went up 4.8%, government expenditure jumped 7.7%, exports soared 12.6% and imports increased 5.5%. Compared to the previous quarter, the GDP expanded 1.09%, the most in four quarters.

Albania’s gross domestic product expanded 3.5% year-on-year in Q2 2025, the slowest pace since Q4 2023, easing from an upwardly revised 3.7% in the previous quarter. Household consumption grew 3.9% and government spending jumped 12.4%, while gross fixed capital formation increased 4.3%. Externally, imports rose 3.3%, outpacing a 1.0% gain in exports. On a seasonally adjusted basis, GDP advanced 0.9% from the previous quarter.

Albania's gross domestic product rose by 3.4% year-on-year in the first quarter of 2025, marking the slowest pace since Q4 2023, slowing from an upwardly revised 4.4% in the previous quarter. Household consumption increased by 2.5% and government spending rose by 7.3%. Meanwhile, gross fixed capital formation grew by 2.9%. On the external front, exports advanced 9.5%, outpacing a 1.7% rise in imports. On a seasonally adjusted quarterly basis, the economy grew by 0.7% in the first quarter of 2025.