WIIW expert in Politiko: Brain drain is steadily weakening the Albanian economy

Suela Gjidede

In an interview with Politiko.al, expert at the Vienna International Institute for Economic Studies (WIIW), Isilda Mara, discussed two of the biggest challenges that the Albanian economy has been experiencing in recent years.

Specifically, the impact of immigration on the labor market and the risks that could affect the slowdown in economic growth projected for 2025. 

The impact of immigration on the labor market

Asked if there is data showing the long-term impact of emigration on productivity and the structure of the labor market in Albania, Mara emphasizes on Politiko.al that the effects are profound and lasting, especially when it comes to the departure of qualified individuals.
"Emigration, especially of qualified individuals, has significant and lasting effects on both productivity and the structure of the labor market. Brain drain limits the domestic pool of talent needed for innovation, investment and technological progress.

Sectors such as healthcare, construction, and IT are already facing skills shortages and wage inflation due to this exodus.
These challenges reduce Albania's competitiveness and could deepen structural weaknesses.

We have described this as a "vicious circle": the domestic labor market fails to provide adequate opportunities - especially for highly educated workers who then emigrate," warns Mara.

She explains that this phenomenon creates a shortage of qualified professionals, hindering the ability of sectors to invest and expand, further weakening the economy.

"Breaking this cycle requires strong coordination between education systems, labor market policies, and migration frameworks. I would also like to emphasize that the approach of addressing labor and skills shortages with migrant workers from other countries - while Albanians continue to leave - has been found to be less effective in Albania. While the influx of migrant workers from Asia and other regions has been noted, Albania continues to function primarily as a transit country rather than a medium- or long-term destination ," the WIIW expert said. 

Risks threatening the economy in 2025  
In its latest spring report, WIIW predicts a growth of 3.7% for the Albanian economy in 2025. But, according to Mara, this growth is conditioned by several internal and external factors that could slow it down.
“Labor shortages and skills gaps, driven by emigration, could limit economic performance, especially in the construction, tourism and services sectors,” she warns.

She adds that geopolitical instability and a possible slowdown in the European Union economy could negatively impact demand for Albanian exports and the level of remittances.

"External shocks could create some geopolitical instability and a slowdown in the EU could weaken export demand and remittances, although the latter have proven resilient even during recent crises such as the pandemic and the war in Ukraine ," Mara concludes for Politiko.al.