The Albanian economy in the 25th year of its transitionEla Golemi

In the past 25 years, the Albanian economy has undergone a significant transformation. However, the task of building a full market economy has been difficult and protracted. Liberalisation of trade and prices came quickly, but institutional reforms have often faced opposition from vested interests. This article sets out the main features of the transition of the Albanian economy from the macroeconomic perspective. The transition’s itinerary is analysed in three periods; the first phase discusses the pre-crisis developments in Albania; the second presents the problems faced by the Albanian economy during the crisis; and the third outlines the need to orient the economy toward a new strategy of growth and the steps that should be taken in order to create opportunities and challenges. The paper concludes that the current economic model cannot generate sustainable growth at the level of the pre-crisis period. New dynamics and prosperity in the 21st century require a smarter growth model and one that has in its substance regional co-operation.