The year 2025 has marked a historic milestone for Albania’s economy, particularly in the area of remittances sent by Albanian emigrants. According to official data published by the Bank of Albania, total remittances for the period January–September 2025 reached €816.45 million, the highest level ever recorded since advanced measurements began.
This figure surpasses every previous year for the same nine-month period and highlights once again the critical role of the Albanian diaspora in supporting households and economic stability back home. For many families across Albania, remittances remain a lifeline—covering basic living costs, healthcare, education, and in some cases small investments.
However, behind this impressive nominal growth lies a more complex and concerning reality.
Euro Depreciation Changes the Real Impact of Remittances
Despite the record inflow of euros, the sharp depreciation of the euro against the Albanian lek has significantly altered the real economic impact of these transfers. Throughout 2025, the euro has touched historically low exchange levels, weakening its purchasing power once converted into the local currency.
As a result, Albanian families may be receiving more euros on paper, but less real value in their daily lives.
According to economic analysis published by Scan and transmitted by Albinfo.ch, this phenomenon has created a paradox:
Higher remittance inflows, but lower real benefits for households.
How Much Are Remittances Really Worth in Lek?
Based on the average exchange rate for the first nine months of 2025, estimated at 98.24 lek per euro, the €816.45 million in remittances translates to approximately 80.2 billion lek.
At first glance, this seems like a substantial injection into the Albanian economy. However, when compared to previous years—especially before the euro began its sustained decline—the difference becomes striking.
To put this into perspective, data from the Bank of Albania shows that in 2022, the average Euro–Lek exchange rate stood at 118.9 lek.
If the same level of remittances (€816.45 million) were converted at the 2022 average exchange rate, their total value would reach approximately 97 billion lek.
That is a difference of nearly 16.8 billion lek, effectively lost due to currency depreciation.
The Real Cost for Albanian Households
This exchange rate gap has direct consequences for Albanian families, particularly those who rely heavily on remittances for:
- Daily consumption
- Rent and utilities
- Medical expenses
- Education costs
- Loan repayments
For these households, the decline in the euro’s value means that basic expenses consume a larger share of their income, despite stable or even increasing remittance transfers.
In practical terms, families are forced to:
- Reduce consumption
- Delay investments
- Dip into savings
- Increase financial dependence on additional income sources
Macroeconomic Effects on Albania
Beyond individual households, the depreciation-driven decline in real remittance value also affects the broader Albanian economy.
Remittances traditionally:
- Support domestic consumption
- Help stabilize the balance of payments
- Reduce poverty in rural areas
- Provide liquidity to the banking system
When their real value shrinks, these positive spillover effects weaken.
At the same time, Albania faces rising prices for:
- Imported goods
- Energy
- Services
This further erodes the purchasing power of remittance recipients, creating a double pressure effect.
Why Remittances Still Matter More Than Ever
Despite these challenges, remittances remain one of Albania’s most reliable financial pillars. The record inflows of 2025 demonstrate:
- Continued trust of emigrants in supporting families back home
- Strong labor participation of Albanians abroad
- Resilience amid global economic uncertainty
However, the data also underline a critical reality: nominal growth alone is not enough.
What Lies Ahead?
Looking forward, the key question for policymakers and households alike is whether:
- The euro will recover against the lek
- Economic policies will adapt to protect purchasing power
- Albania can diversify income sources beyond remittances
Without exchange rate stabilization or real wage growth, the true benefit of remittances risks being structurally undermined, regardless of record-breaking figures.
Conclusion
The first nine months of 2025 have set an all-time record for remittances to Albania, reaching €816.45 million. Yet, due to the euro’s historic depreciation, Albanian families are feeling less financial relief than expected.
This situation highlights a crucial lesson:
Economic well-being depends not only on how much money enters the country, but on how much value that money truly holds.
For Albania, the challenge now is turning impressive numbers into real prosperity for its citizens.