Albania's military expenditure as a percentage of GDP witnessed significant fluctuations between 1980 and 2022. During the early 1980s, spending remained relatively high, averaging around 5.7%. This period reflected the country’s focus on self-reliance and defense under a communist regime. However, by the early 1990s, expenditure fell sharply, reaching 4.7% in 1992 and continuing its decline to 1.3% by 1997, correlating with the economic and political instability following the fall of communism and the 1997 pyramid scheme crisis.
From the late 1990s onwards, spending stabilized at lower levels, averaging around 1.2% of GDP for nearly two decades. A gradual increase to 2% in 2008 coincided with Albania's NATO membership ambitions. However, subsequent financial pressures led to a reduction, with spending hovering around 1.2%–1.5% in the 2010s. A notable rise to 1.6% in 2022 may indicate renewed commitments to NATO defense goals amid heightened geopolitical tensions.
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