Albania had its first EU accession negotiations in July 2022 and saw a non-partisan civil servant elected as president, both major achievements for the country. However, institutional challenges, political polarization, patronage, and resource scarcity continue to hinder ongoing reforms.

Economically, the country has pursued reforms and improved monetary and fiscal stability, the welfare system and sustainable development. Importantly, the Albanian economy has shown resilience, rebounding more than expected following a major earthquake and the COVID-19 pandemic. Still, economic recovery is threatened by the long-term effects of the pandemic, commodity price increases and imported inflation.

Regarding governance performance, the opening of accession negotiations has given impetus to the government’s efforts to strengthen steering capability, resource efficiency and international cooperation. Despite this progress, many of the country’s achievements are still a work in progress and the lack of full local ownership remains a major challenge.

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