44% of the economy in 2021 concentrated in Tirana, other districts fading

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Year after year, the economy is centering in the capital of Albania, while the regions are recording a decline in their contribution in the national gross domestic product (GDP), according to an analysis by the weekly economic magazine, Monitor.

Official data from INSTAT show that from 2016 to 2021, only the economy of the district of Tirana has increased its contribution in the national economy, Durrës is almost at the same place and ten other districts have suffered a decrease in the contribution to the general economy.

The GDP in value marked around 15,1 billion euros in 2021, while 6,6 billion euros or 44% were concentrated in the district of Tirana. From 2016 to 2021, the share of the capital’s economy in the national economy has increased by 4 percentage points.

After Tirana, the district with the highest contribution to GDP is Fieri, with 10,9% of the total. Fieri’s contribution in the national economy has decreased by 0,2% since 2016. The third district with the highest weight in GDP is Durrës with 10,1%. The contribution of Durrës in the national economy increased by only 0,2 percentage points compared to 2016.

On the other hand, the district with the lowest contribution to the economy is Kukës. The northern region, which is even the poorest in the country, had a GDP of only 237 million euros in 2021, or 1,6% of the national economy. The contribution of Kukës in the country’s economy decreased by 0,2 percentage points from 2016.

After Kukës, Gjirokastra is the district with the lowest contribution with a GDP of only 316 million euros in 2021. The contribution of this district in the national economy increased during 2016-2021 by 0,7 percentage points.

After Gjirokastra, Shkodra, Lezha and Berati had the biggest drop in contributions in the national economy from 2016 to 2021.

The rapid decline of the counties’ economy and its concentration in Tirana is showing a rapid increase in inequality. The deepening of economic inequality serves as the strongest reason for the depopulation of districts towards Tirana or abroad.

In these three decades of transition, the national economy has progressed without a clear development model, while for the regions, the concepts of the regional development model seem to be early.

If the economy of the counties is analyzed in detail, there would be more deterioration in 2021 if the public sector had not increased its contribution. In most counties, the public sector has further expanded its contribution through increased employment, while branches of the economy with low productivity, such as agriculture, have progressed further, writes Monitor.

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