World Bank Report highlights Albania’s path to higher income status
According to the World Bank’s latest World Development Report for 2024, Albania is currently classified as an upper-middle-income country, with per capita income levels between $4,466 and $13,845.
Since 1990, Albania has made significant progress in advancing from low-income status and reducing extreme poverty. However, the challenge now is to build on these achievements and aim for high-income status within the next two to three decades.
The report focuses on the “middle-income trap,” emphasizing that continued investment in education and technology is crucial for Albania to achieve its economic aspirations. To transition from upper-middle-income to high-income status, Albania must foster an economy driven by innovation and enhance human capital. Governments in countries like Albania are advised to adopt and integrate advanced technologies and ideas from abroad to stimulate development.
In recent years, Albania has prioritized educational development, including internationalizing higher education and diversifying vocational training. These initiatives, along with increased investments in critical economic sectors, have contributed to both economic and social progress. The country’s economy is increasingly oriented towards technology and scientific research, with universities playing a key role in knowledge-based prosperity.
Go deeper
Shëngjin-Velipojë road set to transform Northern Albania’s tourism landscape
Published on December 23, 2024
Why is this important: The lack of quality infrastructure has long hindered Albania’s economic development. Projects like the Shëngjin-Velipojë road are very important for unlocking the region’s economic and social potential. By improving access to these coastal destinations, the road is poised to stimulate local economies, attract private investments in tourism, and create numerous job opportunities. For northern Albania, an area renowned for its natural beauty yet underserved in infrastructure, the project represents a transformative step forward.
Albania gradually becoming a hub for foreign investment
Published on December 23, 2024
Why is this important: Attracting foreign investment is key for Albania’s economic development, job creation, and integration into the broader European market. With Albania’s commitment to fostering a supportive business environment, foreign investments not only bring in capital but also transfer technology, innovation, and expertise that can modernize key industries.
EU allocates €13 million to modernize Albania’s ground forces
Published on December 18, 2024
Why is this important: Since joining NATO in 2009, Albania has increased its defense budget but remains below the 3% GDP benchmark required by the alliance for member states. International financial support, such as this EU grant, is essential for strengthening Albania’s defense capabilities. This agreement is particularly significant as the EU appears open to funding additional defense and security projects proposed by the Albanian government, with potential approvals expected next year.