The economy expanded by 3.9% in 2025, but business contributed only 1.1% of the growth

Preliminary data from INSTAT show that the Albanian economy grew by 3.9% during 2025, but the vast majority of this expansion did not come from real business activity. Around 72% of total growth was supported by just two components: public administration and net taxes.

According to preliminary estimates based on quarterly Gross Domestic Product, “Public administration” made a contribution of 1.71 percentage points, while “Net taxes” added another 1.11 percentage points.

On the other hand, branches of the real economy, from extractive industry to agriculture and construction, recorded growth of only 1.08%, thus accounting for just 28% of the impact on economic expansion.

According to these indicators, economic activities directly linked to business have recorded the slowest growth rate since 2012, with the exception of 2020, when the economy was hit by the consequences of the pandemic.

This is the second consecutive year in which the main weight of economic growth has been carried by the “state.” In 2024, public administration and net taxes accounted for 51% of growth for the first time in the history of the transition, while in 2025 this trend has deepened even further. Under normal conditions, outside exceptional cases such as elections or the pandemic period, the contribution of these two activities usually ranges from 15% to 30%.