Albania's Ministry of Finance published a readout of a joint press conference with the International Monetary Fund and the Bank of Albania at the close of the IMF’s Article IV mission, setting out the government’s macroeconomic outlook and the fiscal approach embedded in the draft 2026 budget. Finance Minister Petrit Malaj reported GDP growth of 3.6% in the first half of 2025 and projected 3.9% growth for full-year 2025, while positioning the 2026 budget to maintain a positive primary balance, an “optimal” relationship between borrowing and capital investment, and fiscal space to respond to emergencies. Supporting indicators cited included private consumption growth of 3.3% and total investment growth of 4.1%, with unemployment at a historic low of 8.5%. Average inflation for 2024 and the first ten months of 2025 was given as 2.2%, and the 2024 current account deficit as 2.4% of GDP. The statement also cited tourism revenues up 7.7% in the first half of the year, foreign direct investment up 7% in 2024, and foreign exchange reserves of around EUR 7 billion covering 7.3 months of imports. On public finances, the primary balance for 2024 was reported at +1.4% of GDP and public debt at 54.2% (the lowest since 2008), with projections of 54.1% at end-2025 and 53.6% at end-2026; the 2026–2028 framework highlighted EUR 105 million of social protection measures focused on pensioners and public investment of 6.5% of GDP in 2026. The IMF mission chief, Anke Weber, linked recent debt reduction to prudent fiscal policy and noted that proactive monetary policy had helped bring inflation below the target, while pointing to the need for comprehensive reforms to meet the government’s stated goal of European Union accession by 2030. The draft 2026 budget is described as being under discussion in parliamentary committees.

Original source View in tracker