Construction Share in Economy in Highest Level
The weight of construction in the country's economy is increasing year after year, making them increasingly dominant in the economy, while the contribution of productive sectors such as agriculture and industry is declining.
In 2024, the construction sector accounted for 12.5% ??of GDP, the highest level since 2013. On the other hand, agriculture, the sector historically with the largest weight in the economy, accounted for 15.5% of GDP in 2024, the lowest level since 2009.
Also, the contribution of industry decreased to 9.9% of GDP in 2024, the lowest level since 2009. As can be seen over the last decade, the country's economy is moving away from the productive sectors, reorienting itself towards construction and trade.
The decline for three consecutive years of the agricultural sector is reducing its weight in the economy and on the other hand, the wave of new buildings in Tirana and the coast will further increase the contribution of construction to the economy in the coming years.
Developments of the last three decades have shown that the weight of agriculture in the economy has almost halved from 33% in 1995 to just over 15% in 2024.
The contribution of construction to the country's economy has fluctuated in recent decades. In the years 2003-2009, construction was the main branch of the economy.
During this period, there was a boom in the banking sector with the opening of private banks, which massively financed the purchase and construction of real estate. The banking sector was highly exposed to construction, losing a portion of the loans that have still not been cleared from the accounts today.
In recent years, the construction sector has been increasing its weight in the economy, as banks are re-engaging in lending, after a pause of several years. Albania is also the only country in Europe where agriculture has the largest weight in the economy and despite this fact, the country is a net importer of agricultural products.
The Albanian economy suffers from the lack of high-value sectors and those based on innovation. The world is currently experiencing a technological revolution and countries are competing to promote entrepreneurship towards innovation, while Albania is reorienting the economy towards fixed assets in real estate, without added value in the economy.