The European Bank for Reconstruction and Development (EBRD) presented its 2025–2026 Transition Report today. This year’s report focuses on one of the most powerful forces shaping our economies and societies: demographic change.
In his opening remarks at the event, the Governor of the Bank of Albania, Gent Sejko, stated that demography is the fundamental force behind the development and prosperity of any society. He noted that we are currently at a global demographic turning point that demands urgent attention. As fewer people enter the labor market, an increasing number of others become dependent on pension and healthcare systems. These shifts are already exerting pressure on productivity, public finances, political priorities, and long-term growth prospects across various regions.
Governor Sejko further explained that the Bank of Albania has been analyzing and addressing these demographic issues and developments for nearly a decade. Population aging and emigration were identified early on as defining challenges for Albania's economic future. The rapid demographic transformation is reshaping the Albanian economy and society, which are now facing challenges similar to those highlighted in the EBRD Transition Report.
The Governor added that emigration, once considered a factor that mitigated unemployment and poverty, is increasingly emerging as a structural challenge. Sustained economic growth, historically low unemployment levels, and labor shortages in key sectors have made the long-term consequences of demographic change more visible to both businesses and households.
Furthermore, Governor Sejko emphasized that the Albanian economy has shown high adaptability and resilience in recent years, supported by low inflation, steady economic growth, rising employment and wages, and an improved current account. Labor market conditions have improved significantly, reflected in increased employment, a drop in unemployment to historic lows, and labor productivity that is notably higher than in the period before the global financial crisis.
He underlined that the Bank of Albania has played a key role in these developments through the implementation of a cautious, stable, and proactive monetary policy, focused on maintaining price stability and protecting purchasing power.
The Governor stated that the report provides an accurate and appropriate policy framework for understanding demographic changes and their economic impacts. The findings for Albania are in full resonance with the broader conclusions presented in the EBRD Transition Report. Across all developing countries in Europe, aging populations and a shrinking workforce are weighing on economic growth.
Governor Sejko thanked the EBRD for its contribution and support through financial investments in various sectors of the country's economy.