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The Albanian economy has recorded positive performance during the first quarter of 2026, recording an increase of 3.71% in real terms compared to the same period last year.
This performance has been strongly supported by the public sector, which has taken on the role of the main engine for the country's economic expansion, while the private economy and the main sectors, agriculture and industry, have declined.
According to official data published by the Institute of Statistics, the activity that includes public administration, education and health has made the highest contribution to GDP growth in the first quarter of 2026, providing 1.68 percentage points of total growth, which translates into almost half of the entire economic performance for this quarter.
In terms of value added, this group of activities marked a significant increase of 13.93%, leaving other important sectors behind.
After administration, a sustainable contribution has also been made by real estate activities, which contributed more than 0.5 percentage points to total growth in January-March 2026. The data show that professional and administrative services, as well as the construction sector, have helped balance economic indicators.
Business under pressure
On the other hand, businesses in the manufacturing and natural resources sectors are experiencing a period of difficulty. The industry, energy and water group has recorded a decline of 2.17%, continuing to be one of the main inhibitors of economic growth.
Also, agriculture, forestry and fishing recorded a slight contraction of 0.49%, while activities related to art, entertainment and other services suffered the most pronounced decline. Industry and agriculture negatively affected economic growth in this first half of the year by -0.8 percentage points.
How 2026 first quarter growth was inflated, revising down 2025
The Albanian economy started 2026 with a real growth of 3.71% compared to the same period a year earlier, a performance that was directly affected by the update of the comparative base. As part of the review of the annual accounts, INSTAT has changed the data for the first quarter of 2025, correcting the growth rate from 3.83% to 3.53%.
This downward revision of the previous year's base has served as a technical factor that has influenced the way the current economic expansion is reflected. This process reflects the institution's commitment to a more accurate reflection of the real performance of the economy, ensuring that the annual comparison is based on the latest methodological standards. This statistical movement not only clarifies the history, but also helps in a more realistic reading of the growth dynamics that the country exhibited in the first three months of this year.
Consumption growth
The analysis according to the expenditure method highlights a 3.94% increase in the final consumption of the population and the same expansion rate for gross fixed capital formation, indicating a lively dynamic in the domestic market.
Meanwhile, the trade balance was supported by a faster performance of exports, which increased by 9.36%, exceeding the increase in imports by 7.39%. In contrast to these indicators, the government's final consumption has suffered a slight contraction of 1.36%. Compared to the previous quarter, the seasonally adjusted economic growth was estimated at 0.77%, with professional activities and administrative services providing the main impetus.
The first quarter GDP shows a structure of the economy where the weight of public services and private consumption continue to be the key elements that determine the pace of national growth at this stage of the year.
INSTAT has also announced that these estimates are based on administrative data and detailed surveys, remaining open to further revisions depending on the enrichment of the information base, while the revised results for the first quarter of 2025 show a growth of 3.53% in the economy for that period./ Monitor
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