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Albania, last in the region for trade logistics, the only one to record a decline

Politiko 2026-07-04 15:20:03

Albania, last in the region for trade logistics, the only one to record a

Albania has increased trade and invested in road infrastructure, but the country's logistics performance has deteriorated compared to a few years ago. This is the conclusion of the report "South East Europe 2030 Strategy - State of Play in 2025", which compares the economies of Southeast Europe.

According to the report, Albania scored 2.7 points on the International Logistics Performance Index in 2018, but dropped to 2.5 points in 2023. Unlike Albania, the regional average improved from 2.94 in 2018 to 3.15 in 2023.

This indicator is important because it relates to how goods move, how quickly supply chains operate, how efficient transportation is, and how easy it is for businesses to export or import. For a small and open economy like Albania, logistics is a direct part of competitiveness.

Compared to the countries in the region, Albania lags behind. North Macedonia improved from 2.7 to 3.1 points, Bosnia and Herzegovina from 2.8 to 3.0, Montenegro from 2.7 to 2.8, while Greece rose from 3.2 to 3.7 points. Turkey, Croatia, Bulgaria and Romania also have higher scores than Albania in 2023.

Albania’s decline is particularly concerning because it comes at a time when trade in goods has been growing. According to the report, total trade in goods for Albania increased from $8.6 billion in 2019 to $13.6 billion in 2024. Intra-regional trade also increased from $2.15 billion to $3.67 billion.

This means that Albania is trading more, but there are still weaknesses in the conditions that make trade faster, cheaper and more predictable. For businesses, poor logistics can translate into delays, higher transport costs, difficulties in exporting and less competitiveness towards other countries.

The report notes that Western Balkan countries have made significant efforts to invest in roads. Albania, presented in the report as Tirana, has road investments at the level of 1.08% of GDP, above the EU average of 0.6%. So, the problem is not only related to the lack of investment, but also to the quality, maintenance, connectivity between corridors and the functioning of the entire transport system.

The report highlights that the main risk for the region is not just the construction of new corridors, but the maintenance of existing assets. Without good maintenance and management, investments in roads do not automatically translate into more efficient logistics.

Albania needs better roads, but also faster procedures, better connections to ports, more efficient storage, more organized transportation and more predictability for businesses that export./ekofin.al

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