The Albanian economy recorded strong growth of 3.94% in 2024. INSTAT published on Thursday the report on Gross Domestic Product (GDP).

According to the report, growth was driven by construction (5.86%), trade and accommodation (5.69%), as a result of tourism, and public administration (9.57%), as a result of rising wages.

But two very important sectors of the economy, agriculture and industry, were in decline, especially industry.

According to INSTAT, agriculture fell by 1.15%, marking the fourth year of contraction. The sharpest decline was in industry, with the sector shrinking by 6.78%, the sharpest decline since the pandemic (7.32). The blow was marked by the processing industry, which fell by 7.49%, the sharpest contraction since 2019 when data were reported. The fall of the euro and the reduction in the sector's competitiveness from rising costs are driving many factories towards bankruptcy.

Albania's GDP increased by an annual 3.63% in the fourth quarter of 2024, after growing by 4.09% in the previous quarter, the country's statistics office, INSTAT, said.

On a quarterly comparison basis, Albania's economy advanced by 0.72% in the October-December period, the statistical office, INSTAT, said in a quarterly report.

The main contributors to the economic growth were public administration, education, and health, with 1.44 percentage points (pp), trade, transport and accommodation, and food services, with 0.81 pp, and real estate activities with 0.5 pp.

Albania's GDP grew by an annual 3.94% in 2023, after increasing by 4.83% in 2022, the statistical office has said.