Albania's gross domestic product (GDP) increased by an annual 4.09% in the third quarter of 2024, after growing by 4.06% in the previous quarter, the country's statistics office, INSTAT, said on Tuesday.

The country's economy grew as a result of the positive progress in tourism, and construction and the positive effect on consumption from an increase in wages in education and health sectors.

On a quarterly comparison basis, Albania's economy advanced by 2.76% in the July-September period, the statistical office, INSTAT, said in a quarterly report.

The main contributors to the country's yearly economic growth were trade, transport, accommodation, and food services, which added 1.30 percentage points (pp), public administration, education, and health, with 0.91 pp, professional services and administrative services, with 0.81 pp, and construction, with 0.58 pp.

For the entire nine-month period, the economic growth was calculated at 4.02%. The data show that the economy is exposed to only a few non-sustainable sectors, while production in the agricultural and industrial sectors is declining.

According to INSTAT, the main contributors for the third quarter of the year were "Trade, Transport, Accommodation and Food Service" with 1.30 percentage points, "Public Administration, Education and Health" with 0.91 pps, "Professional Activities and Administrative Services" with 0.81 pps, "Construction" with 0.58 pps, "Real estate activities" with 0.20 pps, "Financial and Insurance Activities with 0.10 pps, "Arts, entertainment and recreation; other service activities" with 0.07 pps.

The following groups contributed negatively: "Industry, Energy and Water" with 0.43 pps, "Agriculture, Forestry and Fisheries" with 0.41 pps, and "Information and Communication" with 0.12 pps. "Net taxes on products" contributed positively with 1.06 pps.

The main branches of the economy, for the third quarter of 2024, compared to the third quarter of 2023, are presented as follows: The group "Professional activities and administrative services" recorded an increase of 11.64%, followed by the group of activities of "Administration Public, Education and Health" which marked a rise of 8.36%.

The group "Financial and Insurance Activities" recorded an increase of 6.27%, the group of activities "Trade, Transport, Accommodation and Food Service" recorded an increase of 6.19%, the activity "Construction" recorded an increase of 5.30%, the activity of "Real Estate" recorded an increase of 4.33% and the group of activities "Arts, entertainment and recreation, other service activities" had an increase of 3.88%.

The seasonally adjusted Gross Domestic Product indicator, in the third quarter of 2024, compared to the previous quarter, was estimated to increase by 2.76%.

The group "Arts, entertainment and recreation, other service activities" showed an increase of 7.20%, the group "Professional activities and administrative services" showed an increase of 5.70%, the activity "Public Administration, Education, and Health" showed an increase of 3.11%, the Activity "Trade, Transport, Accommodation and Food Service" showed an increase of 1.93%, the Activity of "Industry, Energy and Water" showed an increase of 1.19%, Financial and Insurance Activity showed an increase of 0.77%, "Information and Communication" showed an increase of 0.67%, and "Real Estate Activity showed an increase of 0, 33%.

The activity of "Construction" showed a decrease of 8.27% and the group "Agriculture, Forestry and Fishing" recorded a decrease of 0.85%.

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