The World Bank expects that the Albanian economy will grow by 3.4% this year, boosted mainly by tourism.

However, the World Bank estimates that the conflict in the Middle East remains a significant risk to slowing economic growth and that reforms are necessary in this regard.

“Albania’s economy continues to show resilience, but maintaining this momentum requires bold structural reforms. Albania’s economic growth is expected to slow as higher energy prices and trade disruptions related to the situation in the Middle East are negatively affecting purchasing power. Accelerating reforms towards EU membership, more investment in human capital and digital infrastructure, and mobilizing private capital will boost investment, create jobs, and accelerate convergence with the EU,” said the World Bank’s Country Director for Albania, Massimiliano Paolucci, during the conference to launch the Regular Economic Report for the Western Balkans.

In the institution’s projections, Albania’s economic growth for 2026 will be 3.4%, while in 2027, growth is expected to be 3.7%.

The World Bank also praised the reduction in unemployment and public debt, while acknowledging the challenge of finding a qualified workforce.

“Albania’s economy grew, supported by the services and construction sectors, especially tourism. Inflation remained below the Bank of Albania’s target. Public debt continued to decline, falling to 53.2% of GDP at the end of 2025. The current account balance improved, supported by tourism-driven services exports. However, employment growth and wage growth should help reduce poverty to 19.4% by 2028,” the report said.

According to the report, Albania is among the countries in the region with the highest per capita emigration.

According to the World Bank, economic growth in the Western Balkans is also expected to remain slow, affected by the spillover effects of the conflict in the Middle East, inflation and rising insecurity.

According to the report, Western Balkan populations are aging faster than almost anywhere else in Europe. Within the next decade, at least one in five people in the region will be over 65. Meanwhile, working-age people, including college graduates and manual workers, are looking for better pay and prospects abroad. The paradox is that labor shortages are binding in key sectors even as many people remain out of work or have simply given up looking.

The report points to an underutilized human capital: women, young people, and others who want to work but face barriers to enter the labor market. If labor force participation rates across the region matched those in comparable European Union countries, that would mean more than 2.8 million additional workers available to reduce labor shortages. Getting more women into jobs alone could add around 0.35 percentage points to annual growth.