Albania and Kosovo at a Crossroads: New Analysis Sparks Public Debate on Economic Vision Beyond 2025

In a period when the world is facing geopolitical tensions, rising trade barriers, and rapid technological transformations, a new analytical study emerges as a call for reflection and action for Albania and Kosovo. Both countries, though small in size, now stand at a decisive moment for the long-term model of their economic development.

Over the past decade, the economies of Albania and Kosovo have achieved meaningful progress. Steady GDP growth, rising income per capita, record tourism in Albania, and expanding digital services in Kosovo highlight their competitive potential in the Western Balkans. But the analysis underscores that these gains remain fragile in the face of emerging global risks.

According to the document, IMF warnings, including statements by Kristalina Georgieva in October 2025 regarding rising trade tariffs could hinder the region’s exports, from Albania’s textiles to Kosovo’s agricultural products. Beyond external pressures, internal challenges such as reliance on traditional sectors, institutional weaknesses, and a labor force insufficiently prepared for the digital economy threaten to slow future growth.

The analysis notes that economic development strategies do exist, but implementation remains problematic due to a lack of political consensus and weak institutional coordination. Therefore, the document presents itself as an initiative by the academic community and civil society to refocus attention on reform implementation, calling for public debate and broader engagement.

At the core of the analysis is a strategic framework built on three key pillars:

• Economic diversification, shifting attention toward information technology, modernized agribusiness, and higher-value sectors;

• Institutional strengthening, to ensure greater transparency, accountability, and fiscal stability;

• Regional cooperation, aimed at economic integration, trade facilitation, and cross-border projects.

The study provides concrete data illustrating the urgency for reforms:

– Albania welcomed 8.97 million visitors in the first eight months of 2025, while Kosovo maintained strong growth momentum, with GDP rising 4.58% in the second quarter of 2025.

– Both economies remain exposed to global shocks, while youth unemployment and dependence on remittances continue to pose major challenges.

– According to the EBRD, without diversification, Albania’s growth could fall below 3.1% by mid-decade.

– New technology programs from investments in artificial intelligence to international partnerships—are seen as crucial opportunities to modernize the labor market.

The document highlights that regional integration remains essential for economic resilience. Increased trade between the two countries, infrastructure projects, and policy harmonization can mitigate the impact of global tensions and lead to more sustainable growth.

In conclusion, the analysis calls on institutions, the private sector, academia, and citizens to unite around a shared vision that prioritizes the public interest over short-term political gains. Only through bold reforms, institutional consolidation, and investment in human capital can Albania and Kosovo transform from fragile economies into competitive global actors, building a sustainable and inclusive future.

This publication (in Albanian) aims to stimulate broad public discussion and serve as a foundation for concrete actions toward a new development model beyond 2025.