Economic and political environment of the media market in Albania in 2024

Albania’s economy demonstrated resilience and moderate growth in 2024, maintaining its trajectory toward sustainable development. The Gross Domestic Product (GDP) expanded by an estimated 3.7%, underpinned by strong performances in key sectors such as tourism, energy production, and construction. The country’s macroeconomic stability was bolstered by a combination of domestic reforms and favourable external conditions, including a stable Eurozone economy that supported Albania’s export-oriented industries.

Poverty levels have decreased with additional reductions anticipated due to rising labour income. Employment has increased, particularly in the private sector, where wages have grown by an average of 12.7% across all industries during the last year). Unemployment in Albania dropped to 9.5% in 2024, the lowest level recorded in over a decade. Job creation was driven by the expansion of the tourism sector, significant infrastructure projects, and growth in the services industry. 

In 2024, the Albanian government introduced a pension reform aimed at addressing long-term sustainability and adequacy issues in the social security system. Monthly pensions were increased significantly, benefiting over 600,000 retirees

Foreign Direct Investment continued to play a pivotal role in Albania’s economic landscape in 2024. The total FDI inflows reached approximately €1.1 billion for the first 9 months of 2024, marking an increase of 8% compared to the same period of 2023. Investments were concentrated in renewable energy, with several photovoltaic and wind farm projects initiated, and in infrastructure, including the commencement of major road and port development projects. 

The Albanian government rolled out several key initiatives in 2024 to foster economic growth and enhance the country’s competitiveness. The National Digital Transformation Strategy focused on expanding digital infrastructure, promoting e-governance, and supporting the growth of the tech sector. The government allocated €150 million for digitalization projects, aiming to position Albania as a regional hub for technology and innovation. Green energy transition was another priority, with support from international financial institutions enabling Albania to accelerate its shift to renewable energy. New solar and wind energy projects added over 200 MW to the national grid, reducing the country’s dependence on hydroelectric power. Additionally, Albania finalized its integration into the Single Euro Payments Area (SEPA), simplifying cross-border transactions and reducing costs for businesses and individuals. This milestone is expected to enhance Albania’s attractiveness as an investment destination and support its EU integration agenda

The country welcomed over 11 million tourists for the period January to November 2024, a 15.8% increase compared to the previous year.

Albania’s economic performance in 2024 highlights a nation on the path to greater economic resilience and opportunity. The steady growth, driven by strategic investments and comprehensive reforms, reflects significant progress. However, persistent challenges such as low pensions, high youth unemployment, and elevated public debt underscore the need for continued focus on structural reforms. By addressing these issues and capitalizing on its strengths in sectors like tourism, energy, and digital transformation, Albania has the potential to achieve more inclusive and sustainable growth in the coming years.

Parliament’s activity was affected by continuous clashes between the ruling majority and a part of the opposition during 2024.

Albania’s ambition to become a full member of the European Union is a decades-long journey that intertwines politics, geopolitics, and an intense technical process evident in the country’s discussions at any time. In mid-October 2024, Albania, for the first time, officially starts the process of a very technical path.

End of summer ‘24, the government reshuffled its cabinet, the ruling party held a congress to discuss critical issues, and both major political groups made parliamentary agreements to prepare for the upcoming legislative sessions