Economy & Tourism
Albania’s economy has transitioned from a closed, centrally planned system to an open, modern one, primarily based on agriculture, industry and tourism.
Overview
Tourism
Significant income source, improving post-1992 with major renovations in architecture, cultural monuments, and the development of new hotels and infrastructure.
The capital city and coastal areas are popular for beaches and archaeological treasures.
Notable international hotel brands operate in Albania, with more under development.
Agriculture
Nearly half of the active workforce is employed in agriculture, contributing about 20% to the GDP.
Key crops include wheat, corn, and sugar beets, alongside fruits like watermelons, apples, plums, grapes, and nuts.
The Mediterranean climate with continental influences supports the cultivation of citrus, figs, and olives in coastal areas.
Industry
Key industries include food and beverage production, construction materials, oil extraction, textiles, and cement.
Rich in natural resources such as oil, natural gas, and a significant reserve of iron minerals like chrome, copper, and iron-nickel.
Albania was once a global leader in chrome production during the 1980s.
GDP
Inflation is expected to decline and stabilize at around 3% by 2025.
Inflation is expected to decline and stabilize at around 3% by 2025.
Inflation is expected to decline and stabilize at around 3% by 2025.
Projected 3.3% economic growth in 2023.
Labor Market
In 2022, employment improved by 3.4%, and poverty levels dropped from 34.4% in 2020 to 28.1% in 2021.
The labor force, about 1.3 million people, constitutes 63.6% of the population.
The average gross monthly salary in 2024 is 75,114 lekë, a 6% increase from the end of 2023.
Inflation
According to the IMF, Albania’s CPI was 4.7% in 2023, down from 6.7% the previous year.
Inflation is expected to decline and stabilize at around 3% by 2025.
Tourism
Tourism is a key sector in Albania’s economy, growing steadily since the early 1990s. Most tourism is concentrated along the Adriatic and Ionian coasts, with additional attractions in the Albanian Alps, Ceraunian Mountains, and historical cities.
To attract more tourists, Albania needs to develop its maritime tourism, lagging behind regional countries like Croatia, Greece, and Turkey. This requires significant investment in marinas, hotels, residential complexes, retail formats, and other facilities.
Durrës Region Development
The Durrës region began this process with the Durrës Yacht & Marinas project, set to be
the largest superyacht marina in the Mediterranean. Funded by Eagle Hills, this $2.5 billion project will transform the area into a luxury living hub, bringing extensive infrastructure investment and long-term opportunities for Durrës and Albania. The development will feature:
- 280 berths for boats
- Luxury homes
- Premium retail experiences
- Unique shopping and dining concepts
- Parks and public spaces
- Hotels and luxury health clubs
Tourism Growth
The New York Times ranks Albania among the top 4 fastest-growing destinations in
2024, with a consistent growth rate of around 35% annually. Durrës is a top destination
for foreign tourists, with over 1 million visitors in 2023, and the county boasts the highest
number of hotels in Albania. While many visitors come from Kosovo, there has been an
increase in tourists from Spain, the Netherlands, and Italy, with Turkey also contributing
over 200,000 visitors in 2023.
Visitor numbers have significantly increased over the past 20 years:
- 500,000 visitors in 2005
- 4.2 million in 2012
- Over 10 million in 2024
Tourism Revenue
Investment Trends
