AGP Executive Report
Last update: 7 hours agoFiscal Policy: Albania’s proposed 2027 tax package is drawing business opposition. AmCham warns that higher VAT and a dividend tax rise from 8% to 15% could weaken competitiveness and deter investment; it wants an impact review and further consultation. Public Investment: The €10 billion draft budget allocates about €2 billion to investment, with more funding for infrastructure, agriculture, healthcare and education. Nearly 28 billion lek is earmarked for road construction and repairs, including Corridor VIII and links around Tirana and Durrës. Industrial Finance: Albania is among nine countries planning to establish the Defence, Security and Resilience Bank, which aims to finance defence projects and expand manufacturers’ production capacity. A founding agreement is due Nov. 30, with operations targeted for 2027. Energy Costs: The government’s price cap sets diesel at 212 lek per litre and petrol at 181 lek, pending the next review. Regional Outlook: The World Bank forecasts Western Balkans growth of 3.1% in 2026, but warns that regulatory burdens and costly cross-border trade continue to constrain business competitiveness and jobs.
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