Albania is gradually losing its position in trade with countries in the region (Kosovo, North Macedonia, Serbia, Bosnia and Herzegovina, and Montenegro), as data for 2025 show a significant deterioration in the trade balance, driven mainly by the decline in exports and the increase in imports.

Albanian products are becoming uncompetitive with Balkan countries, but also beyond, as a result of the decline in the value of the euro, the increase in domestic costs, and the lack of fiscal policies that encourage low-cost production.

Albanian exports to the region in 2025 fell to Lek 62.7 billion, from Lek 67.5 billion in 2024, marking an annual contraction of about 7%. At the same time, imports increased to Lek 59.4 billion, from Lek 54.7 billion a year earlier, or almost 8% more, according to official data from INSTAT.

These developments have significantly worsened the trade balance. In 2024, Albania had a surplus of Lek 12.8 billion in trade with the region, while in 2025 it narrowed to only Lek 3.3 billion, a deterioration of nearly Lek 9.5 billion within a year, with a contraction of about 280%. Albania lost the advantage it had built over recent years in neighboring markets.

The data show that the problem lies not only in the increase in imports, but especially in the weakening of exports, which had peaked in 2023 with over Lek 79 billion, but have been in continuous decline since then. Within two years, exports to the region have lost more than Lek 16 billion in value.

This trend suggests that Albanian producers are losing ground in regional markets, faced with stronger competition from neighboring countries, higher production costs, and an export structure still dependent on low-value-added products, Monitor reported.