In Albania we focus on supporting governance improvements across the economy, enhancing private sector competitiveness and inclusion through wider access to finance and skills as well as strengthening energy diversification and low-carbon transition.
In Albania we focus on:
Support governance improvements across the economy. The EBRD will support the commercialisation and restructuring of key state-owned enterprises, strengthen the corporate governance of firms, improve the quality of institutions and strengthen the rule of law.
Enhance private sector competitiveness and inclusion through wider access to finance and skills. The EBRD will foster increased competition through entry/consolidation and a levelling of the playing field. Increased access to finance and promoting entrepreneurship will strengthen economic growth. Improved business skills, standards and business sophistication will improve the competitiveness of domestic firms on local and regional markets. Access to skills development (incl. skills mismatch reduction) will create employment opportunities. The EBRD will also support increased access to infrastructure especially with the goal to unlock economic opportunities for inclusion target groups.
Strengthen energy diversification and low-carbon transition. The EBRD will support the creation of a more diversified energy mix with reduced vulnerability to climate change and reinforced networks for domestic and regional connectivity.
As well as being a country where the EBRD works, Albania is also an EBRD donor. Albania agreed to contribute up to E36M in grant funding for first-loss risk cover as part of the EBRD €100 million Albanian Agribusiness Support Facility. The Facility was approved in 2015 to promote and enhance access to finance for agribusinesses in Albania.
The EBRD’s latest Albania strategy was adopted on 12 February 2020
EBRD forecast for Albania’s Real GDP Growth in 2023 2.5%
EBRD forecast for Albania's Real GDP Growth in 2024 3.3%
Economic growth reached 4.8 per cent in 2022. Albania’s tourism sector was one of the fastest in Europe to recover to pre-pandemic levels, with 2022 becoming the best year on record in terms of tourist arrivals and overnight stays. Household consumption, boosted by two minimum wageincreases and robust remittance inflows, proved robust in spite of inflation, which peaked at 8.3 per cent year-on-year in October 2022, the highest level in several decades. Inflation declined to 5.3 per cent in March 2023, partly on the back of gradual appreciation of the local currency against the euro since summer 2022. Economic growth is expected to moderate to 2.5 per cent in 2023 given lower real disposable incomes, tighter monetary policy locally and the muted growth prospects of Albania’s key trading partner, Italy.
On the other hand, the strong performance of the hospitality sector tilts the near-term risks to the outlook towards the upside. Growth is set to pick up at 3.3 per cent in 2024, closer to the economy’s medium-term potential.