Albania’s economy has seen significant growth over the past decade, with the Gross Domestic Product (GDP) doubling from $12.7 billion to $25.4 billion. Prime Minister Edi Rama, speaking at the National Assembly of the Socialist Party, emphasized that this transformation is the result of ongoing reforms aimed at creating a sustainable and inclusive economic model. It reflects broader progress in areas such as wages and public debt management.

Why does it matter?

The doubling of GDP over a decade has far-reaching implications for Albania’s future. This growth has not only resulted in better wages, especially in the public sector, but also in reducing public debt to its lowest levels in recent memory. The broader goal of redistributing wealth more equitably is crucial for addressing income inequality and ensuring that the benefits of this growth are felt by a wider portion of society.

Albania’s economic growth over the past decade can be attributed to a combination of factors, including government reforms, improved financial management, and increased investment in key sectors. One of the key takeaways from Mr. Rama’s remarks is the correlation between Albania’s sustained economic growth and wage increases. In the public sector, wages have surpassed the promised average of €900 per month, indicating tangible improvements in the standard of living for many Albanians. Meanwhile, wages in the private sector, particularly in priority sectors such as tourism, construction, and energy, have also seen substantial growth. This wage increase has been fueled by economic expansion and efforts to reduce informal employment, although challenges remain in fully addressing this issue.

Mr. Rama also highlighted the reduction of Albania’s public debt, which has fallen below 60% of GDP. This achievement is particularly noteworthy given the disruptions caused by the 2019 earthquake and the global COVID-19 pandemic, both of which placed significant pressure on public finances. According to Mr. Rama, the decline in debt demonstrates the resilience of Albania’s economy, driven by reform rather than financial mismanagement.

As Albania continues its economic journey, the next challenge lies in achieving broader wealth redistribution. To ensure that, further reforms are needed with a particular focus on improving governance, reducing bureaucratic hurdles, improving infrastructure and implementing pro-business policies.