Albania Is Losing Competitiveness in the Region / Jorida Tabaku: Industrial Production Has Declined!

In an analysis published on social media, Democratic Party MP Jorida Tabaku has sounded the alarm over the crisis facing Albania’s industry and manufacturing sector, warning that the country is losing competitiveness compared with the economies of the region.

Tabaku stresses that European integration should not be viewed simply as a formal accession process, but as a daily race for foreign investment, technology, exports, quality jobs and rising incomes for Albanian families.

“Albania is losing competitiveness to the countries of the region—and, along with it, the race for this century,” the Democratic MP says.

Referring to Eurostat data, Tabaku points out that Albania’s industrial production in 2025 was 15.3% lower than in 2021.

According to her, among 35 European economies, only Ukraine, a country at war, recorded a worse result.

Tabaku cites Serbia as an example, noting that during the same period it increased industrial production by 8.8%, attracting factories and investment in the automotive industry, electrical equipment and the production of spare parts for the European market.

According to her, one of the main blows to Albanian producers has come from the depreciation of the euro. Exporters earn their revenues in euros, while they pay wages, energy bills and other costs in lek.

This situation has particularly affected the fason sector, on which more than 130,000 families depend directly, but its consequences have spread throughout Albania’s processing and manufacturing industries.

The Democratic Party MP argues that tourism and construction can contribute to economic growth, but they cannot remain the only engines of development.

According to her, a modern economy must produce, process, export and invest in technology.

Tabaku also criticizes the lack of a serious strategy for the automotive industry, recalling that when she proposed developing the sector, the government responded with a project for a Formula 1 track in Elbasan.

“A track cannot replace industry. Serbia built factories and supply chains; Albania produced presentations and propaganda,” she declares.

In the technology sector as well, according to Tabaku, tax exemptions are not enough. Development requires quality education, the rule of law, financing, scientific research and a fair competitive environment in order to create sustainable businesses and attract serious investors.

Tabaku’s analysis comes one day after she addressed the decline in exports and the consequences of the current economic model for citizens’ incomes and wallets.

According to her, the material well-being of Albanian families remains among the lowest in the region, while around 40% of the household budget is spent solely on food and non-alcoholic beverages.

For the Democratic MP, Albania needs a change in its economic model: an economy that produces and exports, with lower and predictable taxes, free competition, meritocracy and genuine support for entrepreneurship.

“European integration does not give us competitiveness as a gift. It is won every day. And today, unfortunately, Albania is losing this race,” Tabaku concludes.

REACTION:

Albania is losing competitiveness to the countries of the region—and, along with it, the race for this century.

European integration is not simply membership that will automatically solve our problems. It is a daily race for foreign investment, technology, exports, quality jobs and sustainable growth in the incomes of Albanian families.

And this race will become increasingly tougher.

Today, the material well-being of Albanian families remains among the lowest in the region. Around 40% of the household budget goes solely toward food and non-alcoholic beverages, while rent, energy and housing costs place an even greater burden on daily life.

But the problem is not only how little families consume. The problem is the structure of the economy that must generate these incomes.

Eurostat data show that in 2025, Albania’s industrial production was 15.3% lower than in 2021. Of 35 European economies, only Ukraine, a country at war, had a worse result.

During the same period, Serbia increased its industrial production by 8.8%. It has attracted factories, developed its automotive industry and produces vehicles, electrical equipment and spare parts for the European market.

We have chosen a different path.

The depreciation of the euro has hit Albanian exporters: their revenues are in euros, while wages, energy and other costs are paid in lek. The fason industry feels this blow most acutely, because more than 130,000 families are directly affected. But the problem does not stop with the fason industry. It affects all of Albania’s manufacturing and industrial sectors.

Tourism and construction can contribute to the economy, but they cannot be the only engines of a country seeking to develop and compete in Europe. Take Greece, for example, which today has a large tourism sector but is also diversifying into industry. A modern economy must produce, process, export and invest in technology.

Two years ago, when I called for a serious policy for the automotive industry, the government’s response was a project for a Formula 1 track in Elbasan. But a track cannot replace industry. Serbia built factories and supply chains; Albania produced presentations and propaganda.

The same thing has happened in technology. Tax exemptions do not constitute a strategy. Without quality education, the rule of law, financing, scientific research and a fair competitive environment, it is impossible to create a technology ecosystem or attract serious investors.

The economic model built over these years has favored the concentration of markets, monopolies and the use of national assets to serve a minority. It has not built an economy that serves the majority and gives young people reasons to stay in Albania.

That is why we must change.

Albania needs an economy that produces and exports; lower and predictable taxes; competition that brings prices down; a free market, meritocracy and genuine support for entrepreneurship.

European integration does not give us competitiveness as a gift. It is won every day.

And today, unfortunately, Albania is losing this race.