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We are growing in the wrong direction.

2026-05-04 19:07:21Pikëpamje SHKRUAR NGA RILDO NGJELA
Rildo Ngjela

The World Bank gave us an important warning, which should not be misunderstood: Albania has taken the wrong direction, although it will continue to grow economically. The economy will expand, supported by tourism, consumption and construction. But, at the same time, the World Bank report makes it clear to us that this growth is exposed, dependent and sensitive to external shocks. In short: Albania is not building a strong economy. It is building dangerous growth. And this is where the real concern begins.

People don't experience economic growth through reports. They experience it through everyday life. And everyday life tells us a different story: Food is expensive, fuel is expensive, and services are getting more expensive every day. So while the economy grows on paper, the pressure on people continues to increase through prices. This is the first contradiction that the World Bank report indirectly reveals, but that no one is talking about. Growth is there, but it is not improving people's lives.

Also, the World Bank says that Albania's growth is strongly linked to tourism. This is not an argument that supports growth. It is a warning. Because an economy that depends on tourism is not sustainable. It is fragile. And tourism depends on global stability, travel costs and external demand. All are factors that Albania does not have in its hands. It is not important how much tourism we have today. It is important to understand that we need a second engine of development, when tourism slows down.

On the other hand, the labor market presents the same weakness. Across the region, job creation has slowed rapidly, reaching almost zero growth. The situation in Albania is even worse. Young people are struggling to find stable employment. Some accept low wages or temporary jobs. Many are leaving the country altogether. At the same time, businesses are complaining that they can no longer find workers. Well, this is a very big coincidence for such a small country. It means nothing more than that the system is not working. Education is not at all aligned with the labor market. The economy is not creating the “right” jobs. And human potential is being wasted.

The World Bank report highlights an even deeper issue: demographic pressure. The region, including Albania, is facing an aging/declining population and mass emigration, which is not just a social phenomenon. It is an economic threat. Fewer people mean fewer workers, lower productivity, and short-term economic growth. How can a country build a strong economy while losing its population?

Meanwhile, Albania is not utilizing its full human potential. The World Bank says that women and young people remain underutilized in the labor market. This was also confirmed by INSTAT. By the end of 2025, only 51.9% of women capable of working will be working in Albania. This is also one of the most critical points in the World Bank report, because it shows that Albania's problem is not a lack of people, but a lack of inclusion and efficiency. So, we are not only losing people, but we are also failing to utilize those we have left.

All these elements point us towards the growth model applied today by the government. A model that is based on tourism, consumption and construction, but not on production, industry and exports. This is one of the weakest economic models Albania has ever seen, because it creates a fragile system, where the country consumes more than it produces and depends only on external factors to support growth.

The solutions are not complicated. They are simply not being implemented. The cost of living must be addressed seriously, starting with reducing fuel taxation, which directly dictates other prices. The economy must be diversified, with agriculture, domestic production and industry returning to their true priorities. Jobs must become sustainable and not temporary or seasonal. The exodus of young people must be treated as a national emergency. Women must be integrated into the labor market as soon as possible. And education must match the needs of the economy.

As long as we have economic growth, Albania cannot be said to be in crisis. But it is moving in the wrong direction. And this is more dangerous than the crisis itself, because it creates the illusion that everything is working.

The World Bank's forecast that we will have growth of 3.4% is not a reason to celebrate. It is a warning. A warning that Albania may continue to grow in the wrong direction, dependent on tourism, construction, and luck that comes from abroad.


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