Albania has the potential to increase annual economic growth by 0.7% if it carries out key institutional reforms. The latest publication of the World Bank highlights the opportunities for the Western Balkan countries to accelerate economic convergence with European countries.

The WB estimates that the main areas for carrying out reforms include: Closing the infrastructure gap; Promoting human capital; Strengthening institutions and Improving regional connectivity.

According to the World Bank, the enlargement of the European Union towards the Western Balkans is experiencing an unprecedented dynamism, supported by the launch of a tailored growth plan of Euro 6 billion.

The renewed momentum offers an important opportunity for the Western Balkans to accelerate economic convergence with the living standards of their European peers, which has stalled.

“Based on the development trajectory of the Western Balkans and selected new member states over the years 1991-2023, and simulations that measure the impact on gross domestic product (GDP) of specific policy reforms, this policy note presents a new economic agenda for the Western Balkans to be implemented in synergy with the growth plan,” the World Bank notes.

The World Bank notes that the analysis shows that if these countries could catch up with the New Member States in terms of the strength of institutions, the level of investment, the volume of trade, and the quality of education, their growth rate could double.