Albanian Economy Watch: Albania’s business turnover rose 7% year-on-year in H1 2026, with trade up 10% and construction up 9%, while production grew 2% and services lagged at 4%, alongside a 12% jump in the number of registered businesses to 148,270. Fiscal & Growth Outlook: Finance Minister Petrit Malaj says stronger tax collection and formalisation drove January–June results, with revenues reaching 105% of plan and the government targeting 4% growth for 2026. Energy & Industry Impact: Europe’s drought is hitting hydropower hard—Austrian utility Verbund cut first-half earnings by €370m and flags further generation pressure, while also pointing to expansion plans that include Albania. EU Integration & Regional Links: Austria’s S3 presidency sets priorities on Western Balkan EU enlargement, energy security, transport connectivity and digitalisation, keeping Albania’s accession path in focus. Trade & Competitiveness: A weaker euro against the lek is squeezing exporters, especially textiles and footwear, as costs rise in leks while euro revenues lose value. Labour Mobility: Albania and Vietnam signed an MoU to create regular channels for recruiting and employing Vietnamese workers, with worker rights protections built in. Tourism & Coastal Pressure: Protests and controversy continue around tourism-linked developments in Albania’s protected areas, with Rama facing criticism over how projects balance growth and environmental safeguards. Boxing Controversy: Kristian Prenga denies fight-fixing claims after his loss to Anthony Joshua, blaming illness for his drop in performance.