From Growth to Sustainability: Rethinking Albania's Economy for Inclusive and Sustainable Development

<p><span>This paper investigates whether Albania’s economy, and especially the tourism and agriculture sectors, can support an inclusive and circular economic model that improves citizens’ well-being and promotes long-term sustainability. It aims to encourage and contribute to a meaningful economic development debate for Albania and other countries that face similar challenge. Focusing on the decade from 2013 to 2023, the study examines Albania’s structural transformation in the context of rapid tourism expansion, a construction boom, and persistent underperformance in agriculture, which still employs nearly 40% of the workforce. It compares Albania’s model with the EU and other tourism-intensive economies such as Croatia and Greece to evaluate if just tourism is sufficient and the role of agriculture sector in economic development. Using a mixed-methods approach, the paper analyzes macroeconomic indicators (GDP, wages, pensions, household consumption, sectoral value added, demographics), cost-of-living and price data. The analysis draws from international databases, government sources, and sectoral studies, framed within sustainable economy and inclusive development theory. Findings show that while Albania’s GDP has increased, wages, pensions, household consumption, and agricultural productivity have lagged behind. Households face rising costs, particularly in food and non-alcoholic beverages, partly due to tourism-driven inflation and internal market inefficiencies, yet receive limited direct benefits from economic growth and currency appreciation. Agriculture remains disconnected from the tourism value chain, missing opportunities for local income generation, while local currency appreciation hurts producers. <span> </span>The paper argues that without circular linkages and a closed and efficient connection of local producers and consumers, Albanian households and producers risk absorbing the costs of growth without sharing in its benefits. A shift toward circular and integrated policy approaches is essential to ensure that future development improves household welfare, strengthens rural economies, and advances sustainability goals.</span></p> <p><strong><em><span>Keywords:</span></em></strong><em><span> Tourism, Agriculture, Construction, Real estate, Sustainable growth, Inclusive growth, Economic structure, Economic growth.</span></em></p>