The US Department of State has published the 2026 report on the investment climate in Albania, which highlights the growth of the economy and foreign investment, but at the same time highlights the problems that continue to affect the business climate in the country.
According to the report, the Albanian economy grew by 3.7% during 2025, supported mainly by tourism and the real estate sector. Gross Domestic Product is estimated at around 30 billion dollars, while inflation dropped to 2.2%.
The DASH also highlights the reduction in public debt, which fell from 75% of GDP in 2021 to 52.6% in 2025. However, GDP per capita remains about a quarter of the European Union average.
Despite the positive indicators, the report lists a number of structural challenges for the Albanian economy. Among them are corruption, organized crime, money laundering, distorted competition, the informal economy, low productivity, and labor shortages due to emigration.
A positive development is the increase in foreign direct investments. According to preliminary data from the Bank of Albania cited in the report, they reached a record level of 1.84 billion dollars during 2025. The total stock of foreign investments reached about 17 billion dollars, 57% more compared to 2021.
The real estate sector accounted for the largest share of foreign investment, with 34%, followed by financial services with 18%, extractive industries with 10%, and wholesale and retail trade with 10%.
The report thus highlights a growing economy and increased interest from foreign investors, while corruption, informality, emigration and other institutional problems continue to be considered obstacles to the economic and investment climate in Albania.
