Euro Depreciation Hits Albanian Manufacturers Hard

Albanian manufacturers are struggling to remain competitive in the European market due to the sharp depreciation of the Euro against the Albanian lek over the past five years. The exchange rate has fluctuated significantly, from above Lek 120 per euro in mid-2021 to below Lek 95 last week.

The unfavorable currency rates have increased labor, energy, and rent costs for local manufacturers, making their products pricier and less competitive in the European market. At the same time, revenues from exports in euros are further eroded by the depreciation of the EU single currency.

Textile and footwear manufacturers, Albania's largest export industry, have been particularly exposed to the impact of the unfavorable currency rates. According to data from INSTAT, Albanian manufacturers of textiles and footwear recorded a 23% decline in the value of exports in 2025 compared to 2022.