Albanian Economy Shows Solid Growth In 2Q2025

(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 30.​ Albania's Gross Domestic Product (GDP) in the second quarter of 2025 grew by 3.51 percent compared with the same period in 2024, Trend reports citing the country's Institute of Statistics.

The largest contributions to growth came from“Public administration, Education and Health” (+1.65 percentage points), followed by“Trade, Transport, Accommodation and Food Services” (+0.47 pp),“Real estate activity” (+0.37 pp),“Construction” (+0.30 pp),“Professional services and Administrative services” (+0.27 pp),“Information and Communication” (+0.11 pp),“Arts, entertainment and recreation services, other services” (+0.08 pp), and“Financial and insurance services” (+0.03 pp). Sectors that weighed on growth included“Agriculture, Forestry and Fishing” (-0.46 pp) and“Industry, Electricity and Water” (-0.18 pp).

Year-on-year trends show strong growth in key sectors:“Public administration, Education and Health” expanded by 15.11 percent, and“Real estate” increased by 7.86 percent.“Information and Communications” rose by 5.38 percent,“Arts, entertainment and recreation services, other services” by 5.07 percent, and “Professional services and Administrative services” by 3.88 percent.“Trade, Transport, Accommodation and Food Services” grew by 2.72 percent,“Construction” by 2.68 percent, and“Financial and insurance services” by 1.96 percent. Meanwhile,“Agriculture, Forestry and Fishing” fell by 2.49 percent, and“Industry, Electricity and Water” declined by 1.79 percent. Net Taxes on products increased by 6.53 percent.

Quarterly, seasonally adjusted GDP rose by 0.87 percent compared with the first quarter of 2025. Growth was led by“Information and Communication” (+3.11 percent),“Professional services and Administrative services” (+2.63 percent),“Construction” (+1.34 percent),“Public administration, Education and Health” (+1.24 percent),“Trade, Transport, Accommodation and Food Services” (+1.14 percent), and“Real estate” (+0.68 percent). Sectors with declines included“Arts, entertainment and recreation services, other services” (-2.43 percent),“Financial and insurance” (-0.95 percent),“Industry, Electricity and Water” (-0.83 percent), and “Agriculture, Forestry and Fishing” (-0.62 percent). Net Taxes on products fell by 1.43 percent.

According to the expenditure approach, household final consumption increased by 3.88 percent year-on-year, while general government consumption rose by 12.44 percent. Gross Fixed Capital Formation grew by 4.33 percent, exports of goods and services increased by 0.97 percent, and imports rose by 3.26 percent.

Quarterly, seasonally adjusted changes showed household final consumption up by 1.36 percent, government consumption by 1.08 percent, and Gross Fixed Capital Formation by 0.43 percent. Exports increased by 1.03 percent, while imports rose 2.61 percent compared with the previous quarter.

The data highlights a balanced growth trajectory in Albania's economy, with public services, real estate, and service sectors driving expansion, while traditional sectors such as agriculture and industry face moderate declines.

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