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The economy grows by 3.75%, but businesses contributed only 1.3%, state salaries save us

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The economy grows by 3.75%, but businesses contributed only 1.3%, state salaries

Although the economy has slightly accelerated its growth rates in the third quarter of this year, INSTAT data shows that again, just like in 2024, the improvement came from the effect of public administration, through the increase in state salaries and net taxes on products.

Other traditional sectors that have supported growth are trade and accommodation, tourism-related, real estate and construction. Agriculture and industry continue to be in negative territory.

According to the INSTAT announcement, the Gross Domestic Product (GDP), in real terms, in the third quarter of 2025 is estimated to have increased by 3.75%, compared to the third quarter of 2024.

Measured by sectors, the real economy grew by only 1.31%, while the other contribution came from “Public Administration, Education and Health” with +1.68 percentage points and “Net Taxes on Products” contributed positively with +0.76 percentage points. As a result, private enterprise brought only 35% of economic growth in the first 9 months of 2025, showing a worsening trend from 2024, when the contribution was 49%.

According to INSTAT, the contribution by economic activity in the third quarter of 2025 is presented as follows:

“Public Administration, Education and Health” by +1.68 percentage points, “Trade, Transport, Accommodation and Food Services” by +0.62 percentage points, “Real Estate Activities” by +0.50 percentage points, “Construction” by +0.48 percentage points, “Professional Activities and Administrative Services” by +0.15 percentage points, “Information and Communication” by +0.21 percentage points, “Arts, Entertainment and Recreation; Other Service Activities” by +0.08 percentage points, and “Financial and Insurance Activities” by +0.01 percentage points.

The activity “Industry, Energy and Water” contributed with -0.48 percentage points and “Agriculture, Forestry and Fishing” contributed with -0.26 percentage points and “Net Taxes on Products” contributed positively with +0.76 percentage points.

The performance of the main economic activities for the third quarter of 2025, compared to the third quarter of 2024, is presented as follows:

“Public Administration, Education and Health” marked an increase of 15.04%, followed by the activity “Income Assets”.

Real Estate” with an increase of 10.55%. The “Information and Communication” group marked an increase of 10.40%,

The activity of “Construction” marked an increase of 4.75%, the activity group “Arts, entertainment and recreation and other service activities” marked an increase of 4.13%, the group “Trade, Transport, Accommodation and Food Services” marked an increase of 2.62%. The group “Professional Activities and Administrative Services” marked an increase of 2.11%, and the group “Financial and Insurance Activities” marked an increase of 0.65%.

The activity group "Industry, Energy and Water" recorded a decrease of 4.75% and "Agriculture, Forestry and Fishing" decreased by 1.73%.

Net taxes on products increased by 5.39%.

The seasonally adjusted Gross Domestic Product indicator in the third quarter of 2025, compared to the previous quarter, is estimated to have increased by 1.09%.

Positive growth was recorded in the following groups: "Arts, entertainment and recreation, other service activities" with 5.15%, "Financial and Insurance Activities" with 5.13%, "Information and Communication" with 4.31%, "Professional Activities and Administrative Services" with 4.28%, "Public Administration, Education and Health Activities" with 3.64%, "Trade, Transport, Accommodation and Food Services" with 0.87% and "Real Estate Activities" with 1.49%.

Meanwhile, the following sectors were assessed to have decreased: "Industry, Energy and Water Activity" by 5.11%, "Construction Activity" by 1.90%, and the "Agriculture, Forestry and Fishing" group by 0.51%.

"Net Taxes" on products increased by 3.26%./Monitor.al/

The economy grows by 3.75%, but businesses contributed only 1.3%, state salaries

The economy grows by 3.75%, but businesses contributed only 1.3%, state salaries

The economy grows by 3.75%, but businesses contributed only 1.3%, state salaries

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