Albania

Albania Economy

Albania's economy in numbers:

Nominal GDP of USD 18.9 billion in 2022.

GDP per capita of USD 6,603 compared to the global average of USD 10,589.

Average real GDP growth of 2.7% over the last decade.

Share of the region's population
Share of the region's GDP

Economic structure:

In 2021, services accounted for 60% of overall GDP, manufacturing 6%, other industrial activity 16%, and agriculture 18%. Looking at GDP by expenditure, private consumption accounted for 75% of GDP in 2021, government consumption 12%, fixed investment 24%, and net exports -11%.

GDP by economic sector
GDP by type of expenditure

International trade:

In 2020, manufactured products made up 55% of total merchandise exports, mineral fuels 1%, food 14%, ores and metals 4% and agricultural raw materials 1%, with other categories accounting for 25% of the total. In the same period, manufactured products made up 62% of total merchandise imports, mineral fuels 7%, food 16%, ores and metals 1% and agricultural raw materials 1%, with other goods accounting for 13% of the total. Total exports were worth USD 2 billion in 2022, while total imports were USD 7 billion.

Key exports
Key imports
Key export partners
Key import partners

Economic growth:

The economy recorded average annual growth of 2.7% in the decade to 2022. To read more about GDP growth in Albania, go to our dedicated page.

Fiscal policy:

Albania's fiscal deficit averaged 3.6% of GDP in the decade to 2022. Find out more on our dedicated page.

Unemployment:

The unemployment rate averaged 13.7% in the decade to 2022. For more information on Albania's unemployment click here.

Inflation:

Inflation averaged 2.2% in the decade to 2022. Go to our Albania inflation page for extra insight.

Monetary Policy:

Albania's monetary policy rate ended 2022 at 2.75%, down from 4.00% a decade earlier. See our Albania monetary policy page for additional details.

Exchange Rate:

From end-2012 to end-2022 the lek weakened by 1.8% vs the U.S. dollar. For more info on the lek, click here.
The pace of annual economic expansion ticked up in Q3 from Q2, fueled by a notable turnaround in exports amid a strong tourism season and despite cooling domestic demand. Activity should have remained robust in Q4, according to available data. In Q4, economic sentiment averaged higher than in Q3, fed by stronger sentiment in the industrial sector and recovering consumer confidence. Additionally, merchandise exports stabilized after contracting year on year in Q3. Moreover, tourist arrivals continued to surge year on year, suggesting that the tourism industry remained growth-friendly. Less positively, inflation proved sticky, which prompted the Central Bank to hike rates. In other news, in mid-January, the IMF suggested that the country reduce its fiscal deficit, strengthen the capital buffers of some banks and carry out judicial reforms to improve efficiency.
Projections out to 2033.

46 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 12 expert analysts.

Want to get insight on the economic outlook for Albania in the coming years? FocusEconomics collects projections out to 2033 on 46 economic indicators for Albania from a panel of 12 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Albania economy. To download a sample report on the Albania's economy, click here . To get in touch with our team for more information, fill in the form at the bottom of this page .

Albania Economic Data

2018 2019 2020 2021 2022
Population (million) 2.9 2.9 2.9 2.9 2.9
GDP (USD bn) 15.1 15.4 15.2 17.9 18.9
GDP per capita (USD) 5,250 5,343 5,271 6,240 6,603
GDP (EUR bn) 12.8 13.8 13.3 15.2 18.0
GDP per capita (EUR) 4,446 4,773 4,623 5,277 6,276
GDP (ALL bn) 1,637 1,692 1,647 1,856 2,138
Economic Growth (Nominal GDP, ann. var. %) 5.6 3.4 -2.6 12.7 15.2
Economic Growth (GDP, ann. var. %) 4.0 2.1 -3.3 8.9 4.9
Private Consumption (ann. var. %) 3.1 3.3 -3.3 4.7 7.4
Government Consumption (ann. var. %) 0.7 2.9 1.5 7.8 -4.7
Fixed Investment (ann. var. %) 2.3 -3.6 -1.4 19.2 6.5
Exports (G&S, ann. var. %) 4.0 2.6 -27.9 52.0 7.5
Imports (G&S, ann. var. %) 2.4 2.3 -19.8 31.5 13.1
Retail Sales (ann. var. %) 2.5 3.6 -1.2 5.6 4.9
Unemployment (% of active population, aop) 12.3 11.6 11.7 11.6 11.0
Fiscal Balance (% of GDP) -1.6 -1.9 -6.7 -4.6 -3.7
Public Debt (% of GDP) 67.7 65.8 74.3 74.5 64.5
Inflation (CPI, ann. var. %, eop) 1.8 1.1 1.1 3.7 7.4
Inflation (CPI, ann. var. %, aop) 2.0 1.4 1.6 2.0 6.7
1-week Repo Rate (%, eop) 1.00 1.00 0.50 0.50 2.75
Exchange Rate (ALL per USD, eop) 108 109 101 107 107
Exchange Rate (ALL per USD, aop) 108 110 109 104 113
Exchange Rate (ALL per EUR, eop) 123 122 123 121 114
Exchange Rate (ALL per EUR, aop) 128 123 124 122 119
Current Account Balance (EUR bn) -0.9 -1.1 -1.2 -1.2 -1.1
Current Account Balance (% of GDP) -6.8 -7.9 -8.7 -7.7 -5.9
Merchandise Trade Balance (EUR bn) -2.9 -3.1 -3.0 -3.8 -4.3
Merchandise Exports (EUR bn) 1.0 0.9 0.8 1.3 1.9
Merchandise Imports (EUR bn) 3.9 4.1 3.8 5.1 6.2
Merchandise Exports (ann. var. %) 23.7 -8.1 -12.5 59.4 52.8
Merchandise Imports (ann. var. %) 6.5 5.0 -6.8 34.9 21.7
Foreign Direct Investment (EUR bn) 1.1 1.1 0.9 1.1 1.3
International Reserves (EUR bn) 3.4 3.4 3.9 5.0 5.0
International Reserves (months of imports) 10.6 10.0 12.5 11.7 9.6
External Debt (EUR bn) 8.1 8.3 8.6 9.1 9.8
External Debt (% of GDP) 63.3 60.6 64.9 59.9 54.6

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