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 stood at 2.7 per cent year on year in the first quarter of 2023 as domestic demand weakened on account of high, albeit falling inflation. Goods exports contracted sharply because of lower external demand and strong appreciation of the Albanian lek. The lek’s value was 12 per cent higher in July 2023 than a year earlier, reaching its highest level on record, supported by high tourist arrivals as well as consistently strong inflows of remittances and foreign direct investment. The appreciation of the currency offset a portion of the inflationary shock, resulting in an annual inflation rate of 4.2 per cent in July 2023, below levels seen in other Western Balkan countries and the eurozone, and allowing for a relatively accommodating central bank policy rate of 3 per cent as of end-August 2023. A €600 million eurobond issued in June 2023 was significantly oversubscribed. Growth is expected to continue at a moderate pace of 2.5 per cent in 2023, given the muted growth prospects of Albania’s key trading partner, Italy, and still high food inflation which is eroding disposable incomes. On the other hand, the exceptionally strong performance of the hospitality sector, with tourist arrivals increasing by 30 per cent on the year in the first seven months of 2023, is expected to support growth in both the short and medium term. In line with the anticipated global recovery, economic growth is forecast to return closer to its potential, reaching 3.3 per cent in 2024.