Albania’s economy surged in 2023 with a revised 3.9% growth, continuing into 2024. The outlook for 2024 is now 4.0%, driven by robust consumption, investments, and tourism. The banking sector thrived, with assets growing 6.8% year-on-year, driven by loans and securities. The Bank of Albania's rate cuts spurred lending, with loan growth hitting 12.1% by September. Non-performing loans dropped to a 16-year low of 4.6%, while net profit surged 25% to EUR 284.3 million, reflecting strong economic fundamentals. |
Kosovo's banking sector showcased impressive growth in 2024, with assets rising 11.2% by September, just below 2023's 11.6% increase. Loans to customers surged by 15.1%, highlighting strong credit demand. Household loans soared 20.8%, while business loans grew 11.2%. Customer deposits, making up 81.3% of total assets, grew 11.2%. Net profit reached EUR 138.6 million, a 12.2% increase. Supported by Kosovo's overall economic resilience, with GDP growth forecasted at 4.7% for 2024, the banking sector is poised for continued growth and stability into 2025 (GDP growth +4.2%). |
Albania's economy maintained its strong momentum in Q3 with a 4.1% yoy growth, driven by a booming tourism sector and steady contributions from public services. Despite challenges in agriculture and industry, the outlook remains positive. Projections suggest continued robust growth into Q4, bolstered by increased public investments and strong consumer spending, setting the stage for a solid annual performance of 4% GDP growth. |
Despite a strong start in 2024, Kosovo's economy faced a slight slowdown in Q3. Following impressive growth rates of 5.6% in Q1 and 4.3% in Q2, Q3 2024 saw a growth of 4.1%, falling short of our 4.5% target. This deceleration suggests a cooling off, yet overall growth remains solid. Given the latest data, we confirm our full-year GDP growth forecast of 4.7%, though with some downward risks. |
Even two weeks after the US presidential election, the turmoil surrounding the victory of Donald Trump has not yet subsided. The heightened uncertainty will remain our faithful companion for the time being and has resulted in some forecast revisions. We see positive momentum for our safe havens US dollar and Swiss franc, while our CE currencies are coming under pressure. Apart from the US elections, we have improved our outlook for EUR/ALL due to Albania's good performance. The rouble shows weakness and tests levels at 100 USD/RUB. Last but not least, the hryvnia benefited from seasonal factors. This issue features
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