How is the economy concentrating in Tirana - Durrës?

2025-09-07 08:12:00, Ekonomi CNA

The concentration of the economy and population in the Tirana-Durres region is increasing regional inequality.

The Tirana-Durres region is the epicenter of services, finance, trade, construction and increasingly technology.

This region is home to major commercial centers and large businesses, financial, government, and educational institutions, the country's largest port, and the only international airport.

This region attracts more foreign investors and public projects. 58.2% of active businesses operated in Tirana-Durres in 2024, up from 57.5% in 2023, while 41.5% of the country's population lives in these two regions, up from 41% in 2023.

This concentration brings faster economic growth to this region, deepening inequalities with other regions, which are becoming less sustainable, as agricultural lands are abandoned and rural potential declines.

The agricultural sector entered its fifth year of decline as a result of the bankruptcy of small rural farms due to the contraction of agriculture and the lack of financial support.

Accelerated urbanization is not being followed by long-term planning.

Road traffic is congested. Public services such as water, energy, public transport and waste are at capacity, and air pollution and land management have become major challenges.

The Tirana - Durrës highway is in poor condition and almost impassable due to potholes from the Rinas overpass to Durrës.

In Tirana and Durrës, the cost of living is also much higher, especially in housing. The concentration of population and demand in these cities has increased rent and housing prices.

Data shows that from 2014 to 2022, the monthly expenses of Albanian families on a national scale increased by an average of 27%. On the other hand, prices during this period increased by 19.8% (average inflation 2014-2022).

Indexed with inflation, real expenditures of Albanian households have increased by 7.2% during the period in comparison, but in the Northern regions, they have decreased by about 10% according to data from the INSTAT Household Budget Survey.

In the families of the Northern regions – Kukës, Shkodra, Lezhë and Dibër – the increase in monthly expenses was only 11% from 2014-2022, but given that during this period, prices increased by 19.8%, monthly consumption in Lezhë families decreased by 15%, in those of Shkodra by 11.3%, in those of Dibër by 10.1% and in Kukës, real consumption for a family increased by only 2.6%.

Tirana leads in terms of the size of monthly household expenses.

In 2022, a family in the capital spent an average of 104,426 lek per month, but the real spending of families in the capital increased by only 8% between 2014 and 2022.

The map of household spending growth shows uneven development between regions of the country, which further deepens economic differences, which then become a cause for population displacement from these places.

Other indicators such as Gross Domestic Product by Region show that the North Region grew at much lower rates than the Center and South regions in the last decade.

These developments also explain the massive exodus of the population from the Northern areas, especially young people, even though the regions have great untapped potential for mountain tourism./ Monitor.al