Albania posted economic growth of a real 4.06% y/y in 2018, according to an estimate from the statistics institute Instat released on March 29.

Albania's economy expanded by an annual 3.84% in 2017. Currently, Albania is enjoying one of the fastest economic growth rates in the region. The government expects Albania to keep posting strong economic growth of 4.3% in 2019.

In the fourth quarter of 2018, the economic growth was 3.1% y/y, significantly down from a 4.48% y/y increase in the previous quarter, data showed.

Albania's economic growth in the fourth quarter was driven mainly by the electricity and water supply, which contributed 1.11 percentage points (pp), followed by the trade, transport, accommodation and food service sector (+0.58 pp) and construction (+0.29 pp), the data indicated.

The mining and quarrying sector sector posted the biggest annual growth of 9.94% in 4Q18, which was also the case in the previous three quarters.

One sector, art and entertainment, contracted y/y in the period under review, by 8.66%.

On a quarterly basis, Albania's GDP grew by 0.57% in 4Q18, after moving up 1.09% q/q in the previous quarter.

A breakdown of 4Q18 GDP figures showed that gross fixed capital formation went up by 1.87% y/y. Household final consumption, which accounts for an important part of the total economy, increased by 2.84% y/y, while general government consumption edged down by 0.05% y/y.

Exports of goods and services moved up by 1.09% y/y while imports increased 2.65% y/y.