This annex presents each Western Balkan economy’s overall convergence across 35 indicators, along with its rankings (relative to other Western Balkan economies) in the five assessed clusters. The scores reflect the economies’ performance compared to the EU average, which is set at 100. For further details on the score calculations and indicator selection, please refer to Annex B: Methodology.
Economic Convergence Scoreboard for the Western Balkans 2025
Key highlights
Albania ranks third among the Western Balkan economies in terms of overall convergence with the EU. Since 2014-16, its overall score has declined, mostly due to the weakening performance in the Business Environment cluster, reflecting slower progress relative to the EU.
Albania’s weakest performing area is the Infrastructure and Connectivity cluster, both in terms of scores and ranking. Transport infrastructure remains underdeveloped, with limited road and rail networks. Digital infrastructure also remains inadequate, as reflected in the economy’s low broadband speeds.
The Skills cluster represents Albania’s second most advanced area of convergence with the EU. However, it still ranks second-to-last in the region. The economy has made progress in increasing employment rates – the highest among the Western Balkan economies – and in improving the educational attainment of its labour force. Nonetheless, performance remains weak in key areas such as lifelong learning and research and development (R&D) expenditure.
Challenges persist in the Business Environment cluster, where Albania ranks the lowest in the region and has diverged from the EU. Private investment and access to finance for businesses have weakened over time, while persistently high levels of informal employment continue to undermine the overall business environment.
Digital Transformation is a relatively weak area for Albania, with overall performance ranking second-to-last in the region. While internet usage is widespread and businesses' adoption of digital technologies is relatively high, the overall digital proficiency of Albania’s population remains limited, and there is low engagement with digital public services. Additionally, the ICT sector is comparatively underdeveloped.
Albania outperforms the EU average in the Greening cluster, driven by its low carbon emissions and high energy productivity. This performance is supported by the economy’s advanced renewable energy capacity – primarily hydropower – and the service-oriented structure of its economy, which is less energy intensive. Unlike other regional economies, Albania has also improved its performance in this cluster since 2014-16, mainly due to continued gains in energy productivity and waste intensity.
Key highlights
Bosnia and Herzegovina ranks fifth among the Western Balkan economies in terms of overall convergence with the EU. Since 2014-16, its convergence score has declined, indicating slower overall progress on the indicators compared to the EU. Performance remains weak in most clusters, although progress has been noted in the Infrastructure and Connectivity and Skills cluster.
Bosnia and Herzegovina’s fastest area of convergence is the Infrastructure and Connectivity cluster. The economy has made progress in improving its energy infrastructure and digital connectivity for citizens. However, weaknesses persist in transport infrastructure, with underdeveloped road and rail networks and limited activity in freight transport by rail.
In the Skills cluster, Bosnia and Herzegovina has made modest progress in converging with the EU. In addition to increasing employment levels, the economy has managed to boost labour force productivity and improve the educational attainment of its workforce. However, lifelong learning remains limited, and challenges persist in leveraging skills for innovation, as evidenced by the low and stagnating levels of R&D expenditures.
Bosnia and Herzegovina’s performance in the Business Environment cluster has also diverged from the EU, placing the economy second-to-last in the region. Ensuring a level playing field remains a main challenge due to significant levels of informality and persistent weaknesses in addressing corruption. Additionally, private investment remains low, constrained by limited access to credit for the private sector.
For the Digital Transformation cluster, Bosnia and Herzegovina lags behind other economies in the region. While a flourishing ICT sector and relatively high levels of internet usage serve as positive developments, the lack of digital proficiency among citizens limits the potential for online interactions in both public services and economic activities.
Bosnia and Herzegovina has seen a widening gap with the EU in the Greening cluster, ranking fourth in the region. This negative trend stems from a decline in decarbonisation performance, driven by limited development of renewable power capacities. However, advances in more efficient resource use, such as improved water productivity and reduced waste intensity, have somewhat offset these challenges.
Key highlights
Despite experiencing the fastest convergence in the region, Kosovo remains the lowest-ranked Western Balkan economy in terms of overall convergence with the EU. The most significant progress has been made in the Business Environment cluster, while Greening is the poorest performing cluster.
Although ranking fourth in the region, Kosovo has experienced rapid convergence in the Infrastructure and Connectivity cluster. The economy has improved digital connectivity for its population and kept energy costs low for businesses. However, limited development in transport infrastructure continues to hamper overall performance, with underdeveloped road and rail networks and marginal freight transport activity on rail.
Despite ranking last in the region, Kosovo has achieved some convergence in the Skills cluster with the EU, primarily driven by increases in educational attainment and higher participation of the adult population in education and training activities. However, Kosovo struggles to fully leverage the skills of its population, particularly among the youth, and continues to face persistently low productivity.
Kosovo ranks second in the region in the Business Environment cluster, demonstrating particularly strong performance in indicators related to access to finance and investment. While progress has been modest, the economy has made some strides in strengthening the level playing field, as evidenced by declines in corruption perception and informal employment.
The Greening cluster is Kosovo’s most challenging area, with the economy ranking last in the region and diverging from the EU since 2014-16. Despite improvements in renewable energy capacities, Kosovo has struggled to make significant progress in reducing its carbon emissions. Additionally, the economy has faced difficulties in enhancing resource use, as evidenced by declining water and energy productivity, alongside overall poor waste management.
Kosovo ranks fourth in the region for the Digital Transformation cluster. Its businesses exhibit relatively high levels of digital technology adoption, supported by comparably high levels of online economic activity. However, the population's digital skills remain inadequate, while the digitalisation of public services is underdeveloped.
Key highlights
Montenegro is the top-performing economy in the region in terms of overall convergence with the EU, leading in three out of the five policy clusters. However, it recorded the sharpest decrease in the Greening cluster across the region.
Montenegro stands out as the regional leader in the Infrastructure and Connectivity cluster. This cluster also represents the economy’s fastest area of convergence, especially in terms of energy and digital infrastructure. However, transport infrastructure remains a bottleneck, with low road and rail network densities and underdeveloped freight transport.
Skills is the third cluster in which Montenegro leads the region. The economy has made good progress in improving educational outcomes and overall labour productivity, particularly against the backdrop of rising employment rates. However, expanding the skills pool by integrating youth into the labour force and providing continuous skill development opportunities for the adult population remain ongoing challenges.
Despite a slight decline in its score over time, Montenegro remains the regional leader in the Business Environment cluster. The economy outperforms the EU average in both attracting foreign and domestic private investment. However, despite moderate progress in creating a level playing field, it continues to struggle with a relatively high level of informal employment and perceived corruption.
Montenegro’s lowest regional ranking is the Digital Transformation cluster, where it ranks third. While the population has widespread internet usage, and digital skill levels close to the EU average, interactions with public authorities and online purchases are significantly below the EU average.
Despite deteriorating outcomes since 2014-16, Montenegro remains the second-best performer in the region for the Greening cluster. However, all indicators have diverged from the EU, reflecting relatively slow progress. The lack of efficient resource use – highlighted by low water productivity and high levels of waste intensity – poses a risk to the sustainability of economic growth.
Key highlights
North Macedonia ranks fourth in the region, with limited progress in closing the gap with the EU since 2014-16. While the economy has shown moderate convergence in the Business Environment cluster, worsening outcomes in Infrastructure and Connectivity and Greening have hindered its overall convergence.
Infrastructure and Connectivity is the most challenging policy area for North Macedonia, where it ranks second-to-last in the region. The economy has experienced a decline across most indicators, particularly those related to transport infrastructure. Energy infrastructure is also an area of concern, with significant levels of power losses coupled with high electricity prices for businesses.
North Macedonia ranks third in the region in the Skills cluster, with stagnant performance over time. While educational outcomes and employment rates have improved, limited educational and training opportunities for adults, along with persistently low R&D expenditure, continue to weigh down the economy’s performance.
The Business Environment cluster represents North Macedonia’s fastest area of convergence. The economy has made good strides in attracting greater volume of foreign direct investment (FDI) and in recording increased levels of private investment and trade. By contrast, challenges persist in ensuring a level playing field, with worsening outcomes concerning corruption.
Digital Transformation is North Macedonia’s best-performing area, ranking second in the region. The economy’s developed ICT sector and relatively high adoption of digital technologies by its businesses contribute to this strong performance. However, the low level of interaction with public authorities highlights deficiencies in the digitalisation of public services.
North Macedonia ranks third in the Greening cluster; however, like many economies in the region, it has experienced a diverging trend. The relative performance of all indicators has worsened, with particularly slow progress towards decarbonisation. The only area of convergence is waste management, with an increasing share of waste being recycled.
Key highlights
Serbia shows the second-highest overall convergence in the region, with a slight improvement since 2014-16. The economy performs strongest in the Digital Transformation cluster, while the Greening cluster remains its most pressing challenge.
Despite a decline since 2014-16, Serbia ranks second in the Infrastructure and Connectivity cluster. The economy has diverged from the EU average across all indicators related to transport infrastructure, with notable declines in rail and road network densities. While Serbia leads the region in digital infrastructure, the economy has also seen declines in both mobile cellular penetration and broadband speed.
Serbia ranks second in the region in the Skills cluster, showing positive convergence since 2014-16. The economy demonstrates higher employment levels, including among youth, and has made overall progress in improving educational outcomes, as reflected in its results from the Programme for International Student Assessment (PISA). However, it continues to face obstacles in boosting labour productivity, highlighting, among others, the need for greater policy focus on upskilling and reskilling the adult population.
Serbia has shown convergence with the EU in the area of Business Environment, where it ranks third in the region. The economy has made notable progress in attracting higher levels of investment, both from foreign investors and domestic sources. However, challenges remain in ensuring a level playing field, with high levels of informal employment and rising concerns about corruption. Additionally, trade performance has diverged from the EU average, reflected in the relative decreases in both trade flows and the export activity of small and medium-sized enterprises (SMEs).
Serbia stands out as the regional leader in the Digital Transformation cluster. High levels of digital skills, strong engagement of the population with public services and economic activities online, and a robust ICT sector position Serbia ahead of its peers. However, businesses appear slow in adopting AI technologies, pointing to a lack of readiness or supportive ecosystems for advanced digital integration.
Greening is Serbia’s most challenging area, with the economy ranking second-to-last in the region and experiencing substantial deterioration since 2014-16. All the indicators have worsened, reflecting particularly slow progress in decarbonisation – evidenced by the sluggish growth of renewable energy capacity – and in promoting sustainable resource use.
