Albania’s Economic Growth and Digital Transformation: Key Developments

Albania is witnessing significant economic and digital transformations, with several key developments that are poised to impact businesses and the general public alike. Here are some of the most important updates:

1. Albanian Online Payments Surge Elevenfold:
   • The average Albanian made 23 online payments annually in 2024, an elevenfold increase from 2 in 2015. This surge in digital transactions is a clear indicator of the country’s shift towards a more digital economy.
   • Additionally, 78% of Albanians now possess a bank account, up from 40% in 2015. This increase in financial inclusion is expected to further drive economic growth and stability.
   • SEPA (Single Euro Payments Area) transfers will launch in Albania in October 2025, which is projected to save citizens and businesses approximately EUR 20 million in the first year. The shift to electronic payments is crucial in combating cash-based transactions, which often facilitate informality and money laundering.
   • Source: Shqiptarja
2. Albania Joins SEPA in October:
   • Albania will join the Single Euro Payments Area (SEPA) in October, which is expected to bring significant benefits to the economy. The expected savings in the first year are approximately EUR 20 million.
   • Electronic payments per capita have increased from 2 to 23 in the last decade, highlighting the rapid adoption of digital financial services.
   • SEPA includes 36 countries, encompassing the European Union, some European countries, the United Kingdom, Albania, and Montenegro. SEPA offers speed, security, and lower transaction fees, which will be beneficial for both businesses and consumers.
   • Source: ABC News
3. Albania’s Budget Booms: €1.1 Billion Collected in First Two Months:
   • Albania’s 2025 budget shows strong revenue collection, with €1.1 billion collected in the first two months. This is a significant increase compared to the same period in 2024.
   • The revenue growth is driven by increased employment, wages, and consumption. However, government spending lags behind revenue, with only €940 million spent during the same period.
   • Public investment projects have been significantly delayed, which is a major cause of the spending shortfall. This highlights the need for efficient allocation and utilization of resources to ensure sustainable economic growth.
   • Source: Shqiptarja
4. Albanian Search Engine Gjirafa.com Secures $2 Million Investment:
   • Gjirafa.com, an Albanian-language search engine, secured USD 2,000,000 in investment from Rockaway Capital. This investment aims to expand internet services in Albania, Kosovo, and North Macedonia.
   • Gjirafa.com has experienced significant growth, recording over 10 million searches and 1 million visitors in the past 10 weeks. The investment will focus on improving online search, e-commerce, and online advertising infrastructure.
   • This development is expected to drive digital transformation in the region, leveraging the high smartphone adoption and internet penetration to bring the economy online.
   • Source: Telegrafi

These developments highlight Albania’s progress towards a more digital and economically robust future. The surge in online payments, the integration into SEPA, strong budget performance, and significant investments in digital infrastructure are all positive indicators of the country’s growth trajectory.