GDP per hour worked in Albania was estimated at $18.7 in international dollars in 2025, down 4.1% from 2024. The figure is also well below the ILO’s estimated global average of $23.3 per hour.
Albania trails all other Western Balkan economies for which comparable data are available. Bosnia and Herzegovina recorded $26.3 per hour, followed by Serbia at $29.8, Montenegro at $31.1 and North Macedonia at $34. The ILO does not provide comparable data for Kosovo*.
Labour productivity measures the value of goods and services produced relative to the amount of time workers spend producing them. It is influenced by factors including technology and automation, investment, innovation, education and workforce skills, but also by the structure of an economy and the sectors that account for most production.
Albania’s relatively low labour costs and high level of informality have historically provided businesses with limited incentives to invest in automation and productivity-enhancing technologies. When labour remains relatively inexpensive, companies can have less motivation to replace or complement human labour with machinery and technology.
The country’s economic structure is another important factor. A gradual decline in the importance of labour-intensive industries such as garment production could create an opportunity to shift towards sectors capable of generating greater economic value per working hour.
The productivity gap is particularly important as wages in Albania have risen in recent years. Higher labour costs could eventually encourage businesses to invest more in technology, skills and more efficient production in order to maintain competitiveness.
Globally, the productivity gap is even more pronounced. Ireland recorded the highest GDP per hour worked at $164.7, followed by Luxembourg at $159.5. These figures also demonstrate the importance of economic structure, as highly productive economies tend to have a greater concentration of high-value industries and services.
For Albania, improving productivity will be crucial not only for business competitiveness but also for raising living standards and supporting sustainable wage growth. Without stronger productivity gains, higher labour costs could eventually put additional pressure on companies and limit the pace at which real incomes can improve.
