an hour agoAlbania third for per capita income in region, last Kosovo
Periskopi(2 months ago)
(2 months ago)Kosovo continues to remain the economy with the lowest per capita income in the Western Balkans, though according to the latest projections of the International Monetary Fund (FMN), the country is expected to mark the fastest growth in the region in the coming years.
According to IMF data, Kosovo is projected to reach $8,958 per capita this year, ranking the last in the region after Albania, Northern Macedonia and Bosnia and Herzegovina. However, the international institution estimates that Kosovo's economy has high growth potential if investments in human capital, technology and improved business environment continue.
For Kosovo and Northern Macedonia, The IMF emphasises the importance of reforms in the labour market and increased productivity to meet demographic challenges. These trajectorys show that the region is moving from a stage of consumer-based growth to a more sustainable growth based on exports and investments, reflected in the optimistic numbers of the next decade”.
On the other hand, Albania is positioned among the region's most dynamic economies, with per capita income that, according to projections, will amount to $12,493 this year. The IMF links this performance with strong growth of the tourism sector, fiscal discipline and expanding investments in construction and infrastructure.
Prospects for the period 2026;2031 are seen positive for both countries. Kosovo is expected to reach $12,483 per capita by 2031, registering the largest percentage increase in the Western Balkans and narrowing the gap with neighbours. The IMF considers this a rapid process of economic rapprochement with the region.
Meanwhile, Albania is expected to reach $17,353 per capita by 2031, supported by continuing institutional reforms and benefits from the European integration process. According to the IMF, pre-membership funds in the European Union and expanding the service sector will be key factors in this growth.
The historical analysis of the period 2010'2026 shows that the region's economies have passed a difficult journey after the global financial and pandemic crisis of 2020. Albania has achieved more than double per capita income compared to 2010, while Kosovo has maintained a steady growth rate thanks to domestic consumption and remittances.
The IMF estimates that the Western Balkans are gradually entering a new phase of economic development, where the growth model is shifting from consumption to investment and exports. For Kosovo and Albania, the main challenge remains to boost productivity, strengthen the labour market and create a more competitive economy in relation to European Union standards. /Monitor
