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Informality in the country, we are worse than the countries of the region. Unfair competition hinders market development

2024-10-25 14:22:24Biznes SHKRUAR NGA REDAKSIA VOX

Informality in the country, we are worse than the countries of the region.

The informal economy, which includes activities outside the legal and regulatory framework, remains a constant challenge in many countries of the Western Balkans. The "Balkan Barometer" data for the years 2023 and 2024 show that the perception of the informal economy and unfair competition has improved slightly, but remains a moderate concern.

According to this report regarding the degree of informality in the country, Albania received an assessment of 2.1 points, which shows that businesses in the country perceive this factor as a moderate obstacle, but with a smaller impact compared to 2023, when this indicator was at the level of 2.4 points. Even compared to the average of the Western Balkans, which is 2.5 points, Albania ranks worse. This fact shows that the problems with the informal economy in Albania are greater compared to some other countries in the region. We emphasize that the assessment is from 1 to 4 points, where 1 means a big obstacle, 2-moderate obstacle, 3-small obstacle and 4-no obstacle.

However, this assessment for Albania regarding informality shows that there are still significant challenges related to unregulated competition. Informal businesses operate at lower costs as they avoid taxes, which creates an uneven playing field, especially for small and medium-sized enterprises.

When compared to other countries of the Western Balkans, Albania appears in a less favorable situation. Countries such as Serbia and Bosnia and Herzegovina received a score of 2.6 points indicating that businesses there perceive informality as a lesser obstacle to the country's development. On the other hand, Kosovo and North Macedonia also face problems similar to our country in terms of the informal economy. These countries were evaluated with 2.3 points and 2.4 points, respectively.


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