This guide provides an overview of how to interpret and utilise the data presented in the Economic Convergence Scoreboard for the Western Balkans 2025. More information on the overall approach and methodology, including the selection of indicators or the calculation of scores, are included in the annex.
Economic Convergence Scoreboard for the Western Balkans 2025
The Scoreboard assesses the level of convergence of the Western Balkan economies across a total of 35 indicators, grouped under five policy clusters key to economic performance:
Infrastructure and Connectivity
Skills
Business Environment
Digital Transformation
Greening
The analytical framework builds on the growth models in the economic literature:
Exogenous growth models (Solow-Swan): Infrastructure and Connectivity and Business Environment contribute to capital accumulation (physical capital) and productivity growth.
Endogenous growth models (Romer and Lucas): Skills and Digital Transformation contribute to human capital and knowledge accumulation. Greening can drive technological change and ensures sustainability of growth.
Each policy cluster includes six to eight indicators selected based on their relevance to economic growth, as well as the availability and comparability of data.
The primary data source for the selected indicators was Eurostat to maximise comparability between the European Union (EU) and the Western Balkans. When this was not possible, data were directly sourced from the national statistical offices of the Western Balkan economies and other international sources, including the OECD.
The dataset used to calculate scores and rankings includes the six Western Balkan economies (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia) as well as the EU 27 member states.
Convergence for indicators is measured over three sub-periods: 2014-16, 2017-19 and 2020-23, rather than on an annual basis. Each data point represents the average value of the available years within each sub-period. This approach allows for the following: 1) integrating the inclusion of indicators not updated annually; 2) smoothing out cyclical variations or shocks; and 3) overcoming data inconsistencies or gaps.
The limited statistical coverage in the Western Balkans, compared to EU member states, influenced the selection of indicators, with many indicators initially considered for the Scoreboard due to their strong correlation with economic growth ultimately excluded primarily due to limitations in data availability. Alternative indicators were selected as proxies to effectively encapsulate comparable dimensions of economic performance and development. For indicators with incomplete time-series coverage, missing data were addressed through imputations.
The Scoreboard leverages two methods to calculate scores and rankings.
Each indicator score represents the ratio of a specific Western Balkan economy's sub-period value to the EU average, which is set at 100. Scores above 100 indicate overperformance, while scores below 100 signal lower levels of convergence in relation to the EU.
For example, Albania's employment rate was 52.0% over the period 2020-23, compared to the EU average of 53.5%. The indicator score is therefore (52.0/53.5) × 100 = 97, which means that Albania's employment rate is 97% of the EU average, indicating a high level of convergence (Figure 1).
The cluster scores are derived from a dedicated composite indicator. Individual indicator values were treated for outliers and then normalised before being aggregated into cluster scores. As with indicator scores, the EU average is set at 100. Scores above 100 indicate overperformance, while scores below 100 signal lower levels of convergence in relation to the EU.
For example, the calculation of Albania's seven skills-related indicators for the period of 2020-23 results in an average standardised score of 37, while the EU average remains at 100. This indicates that Albania is performing at 37% of EU levels (Figure 2).
The underlying raw data used to determine scores are provided in the indicator-level graphs throughout the chapters.
The indicators in the 2025 edition reflect the methodological improvements designed to enhance the robustness and comparability of the data, while providing better insight into the policies that drive economic growth. As a result, it is advisable not to directly compare the results of this edition with those of the first edition released in 2023.
The Scoreboard serves multiple purposes, offering significant benefits for various stakeholders:
Policy makers in the Western Balkans
The Scoreboard helps to identify economic strengths and weaknesses, assess the effectiveness of current policies, and pinpoint areas requiring targeted reforms. By leveraging a data-driven approach, it supports evidence-based policy making and the development of tailored economic strategies to accelerate sustainable growth.
As it was developed in close co-ordination with national statistical offices across the region, the Scoreboard strengthens the collection of high-quality, reliable data, enhancing the ability to track policy outcomes more effectively.
EU member states and institutions
The Scoreboard provides an objective, data-driven assessment of the region’s progress towards economic convergence with the EU, contributing to the European Commission’s enlargement reports on the Western Balkans. It offers insights into policy implementation, highlighting the extent to which measures are effectively enforced rather than merely transposing the EU acquis into laws and regulations.
By identifying priority policy areas that require further efforts, the Scoreboard can help guide the EU’s funding priorities, including those under the Instrument for Pre-Accession Assistance (IPA) and the Western Balkans Investment Framework (WBIF).