Significant Increase in International Inflows to Bank Accounts in Albania in 2024

 International transfers into bank accounts of individuals and businesses in Albania saw a notable surge in 2024. According to data from the Bank of Albania, the number of incoming transfers in the Albanian banking sector reached nearly 8.1 million, marking a 39.5% increase compared to 2023.

Incoming transfers from abroad to bank accounts in Albania (thousands), from 2015 to 2024, source: Monitor.

The volume of international incoming transfers reached an all-time high, growing fivefold compared to 2019, before the COVID-19 pandemic. This increase was observed in both business and individual segments throughout 2024.

Transfers to business accounts exceeded 7.55 million transactions, reflecting a 39.6% rise compared to 2023. Meanwhile, transfers to individual accounts totaled 517,000, showing a 37.6% increase from the previous year.

In total, the value of incoming transfers from abroad to business and individual bank accounts amounted to 782.9 billion lek, reflecting a 42.7% increase compared to the previous year. Despite the negative impact of exchange rate fluctuations, the value of these transactions reached a historic record. In 2024, the average exchange rate of the euro against the lek fell by 7.4% compared to 2023.

The sharp rise in the number of incoming transfers in recent years is largely attributed to the expansion of the tourism sector and the growth of service exports. Additionally, personal transfers and remittances have also contributed to this increase.

According to Bank of Albania data, net tourism revenues for the first nine months of 2024 reached 1.77 billion euros, reflecting an annual growth of 21%. Tourism remains a primary contributor to the country’s balance of payments, though its growth rate has slowed from the record levels of the previous year, as anticipated.

Beyond tourism, the overall service sector continues to play a significant role in boosting the country’s exports. For the first nine months of 2024, service-related revenues generated nearly 3 billion euros for the economy, marking a 14.3% increase compared to the previous year.

Remittances also continue to make a positive contribution to the current account balance. For the first nine months of 2024, remittances from emigrants totaled 772 million euros, representing a 14% increase from the previous year. The recent waves of Albanian emigration have revitalized remittance flows, positively impacting the country’s current account balance.

The continued increase in international transactions, driven by tourism, service exports, and remittances, underscores Albania’s evolving economic landscape and its growing integration into the global economy.