Projections on Albania Predict Significant Population Decline, Aging

New population projections for 2021-1050, drawn up by a group of experts from the International Organization for Migration (IOM), show that the country will have around 2 million inhabitants in 2050, up from around 2.76 currently. The median age will reach 49 years. The age group under 19 will shrink by 47% and that over 65 will expand in number by 65%. The new workforce will not be able to replace retirees. The policy is at an early stage to seriously address the demographic crisis and its consequences. All social, economic and political aspects of the country will be affected.

Beyond other problems related to the protracted transition, entrenched poverty and fragile democracy, the most pressing issue facing the country is demographics. The reduction of the population and its aging became the main concern of businesses in recent years, but it seems that the perspective is darker and the recovery measures do not give results in the short term. 

In January 2023, INSTAT reported that the country's population was reduced by over 31 thousand people compared to January 2022 and 145 thousand people less than in 2011, when the last Census was conducted. 

A recent International Organization for Migration (IOM) population projection 2021 – 2050 showed that the total population of Albania will reach within a realistic limit between 2.06 and 2.3 million inhabitants by 2050. 

The new projections have room for large margins of error depending on developments in immigration and fertility rates, but the data are very accurate for the development of the over-65 population. New IOM projections, although not official, show the population of children aged 0-19 will decline by 47% by 2050, while the population over 65 will expand by 56%. 

Population decline is evident, but the lack of accurate data on age groups and geographic distribution makes the negative effects stronger and solutions more difficult. The postponement of the census and the lack of accurate projections for the expectation of the population indicator have involved businesses in a dark area. 

The President of the Chamber of Commerce and Industry, Nikolin Jaka, considered accurate population data essential, as information on the number and structure of the population is vital for business plans and activity. The well-known economist, Selami Xhepa, called for a serious treatment of issues related to human capital. 

According to him, structural reforms remain essential to create an encouraging environment not only for private investments, but also for increasing labour productivity. Support policies for investors should be reformatted to achieve not just quantitative objectives, but some qualitative objectives that affect the well-being of society, as essential for population growth, - advised Xhepa.