This page shows how the six economies compare in the Economic area. The charts below show where they stand relative to the EU average, the change over the previous year, and the estimated time needed to reach the EU average if the trends of the past five years continue. They show this first for the area as a whole, then for each of the six indicators in this area, together with their latest values.
Montenegro was the best performer in the Economic area in 2025, at 60% of the EU average. North Macedonia and Serbia followed, both at 56%, while Bosnia and Herzegovina stood at 50%. Kosovo and Albania lagged well behind, both at 39% of the EU level.
All six countries improved relative to the EU average in 2025. Kosovo recorded the strongest gain, of 4.7 pp, followed by Montenegro and Bosnia and Herzegovina, with 3.1 pp and 2.4 pp. North Macedonia and Serbia improved more modestly, by 1.2 pp and 1.0 pp, while Albania saw the smallest gain, of just 0.6 pp.
At the pace of improvement from the past 5 years, Montenegro is closest to reaching the EU level in the Economic area, at 21 years away. Bosnia and Herzegovina and Serbia would need 26 years each, and North Macedonia 33 years. Albania would need 41 years, while Kosovo is furthest behind, at 49 years.
GDP per capita at PPS in 2025 was highest in Montenegro, at 22,540 EUR, followed by Serbia, at 21,590 EUR. Albania and North Macedonia were close to each other, at 17,940 EUR and 17,840 EUR. Bosnia and Herzegovina stood at 15,160 EUR, while Kosovo had the lowest level, at 12,170 EUR.
Relative to the EU average, Montenegro and Serbia had the highest GDP per capita, at 54% and 52% of the EU level. Albania and North Macedonia were both at 43%, and Bosnia and Herzegovina at 36%. Kosovo remains furthest behind, at just 29% of the EU average.
5 of the 6 countries narrowed the gap to the EU in GDP per capita in 2025, though only modestly. Albania recorded the largest gain, of 1.3 pp. Montenegro, Kosovo and North Macedonia improved by 0.6-0.8 pp, and Serbia by 0.4 pp. Bosnia and Herzegovina was the only country to slip back, by 0.1 pp.
At the pace of improvement from the past 5 years, Montenegro would need around 21 years to reach the EU average in GDP per capita, and Albania and Serbia just over 3 decades (31 and 33 years). Kosovo would need around 6 decades and Bosnia and Herzegovina around 8, while North Macedonia is more than 100 years away.
The average gross wage at PPS in 2025 was highest in Bosnia and Herzegovina and North Macedonia, at 2,103 EUR and 2,015 EUR. Serbia and Montenegro followed, at 1,895 EUR and 1,824 EUR. Wages in Kosovo and Albania were considerably lower, at 1,238 EUR and 1,185 EUR.
Relative to the EU average, Bosnia and Herzegovina had the highest average gross wage, at 67% of the EU level, followed by North Macedonia, at 64%. Serbia and Montenegro stood at 60% and 58%. Kosovo and Albania were far behind, at 39% and 37% of the EU average.
All six countries narrowed the wage gap to the EU in 2025. Bosnia and Herzegovina recorded by far the largest improvement, of 4.8 pp, followed by Serbia, with 3.1 pp. Kosovo, North Macedonia and Montenegro gained between 2.2 pp and 2.6 pp, while Albania saw the smallest improvement, of 1.6 pp.
At the pace of improvement from the past 5 years, Bosnia and Herzegovina, North Macedonia and Serbia would reach the EU average gross wage in 14-18 years. Albania and Montenegro would need around 4 decades (39 and 44 years), while Kosovo is furthest away, at 67 years.
The minimum wage at PPS in 2025 was highest in Montenegro and North Macedonia, at 1,013 EUR and 990 EUR. Serbia followed at 910 EUR, and Bosnia and Herzegovina at 820 EUR. Kosovo and Albania had the lowest minimum wages, at 608 EUR and 562 EUR.
Relative to the EU average, the minimum wage was highest in Montenegro and North Macedonia, at 77% and 75% of the EU level. Serbia stood at 69% and Bosnia and Herzegovina at 62%. Kosovo and Albania were further behind, at 46% and 43% of the EU average.
5 of the 6 countries narrowed the minimum wage gap to the EU in 2025. Kosovo recorded an exceptionally large improvement, of 22.3 pp. Montenegro and Bosnia and Herzegovina also saw strong gains, of 10.1 pp and 8.7 pp, while Serbia and North Macedonia improved by 3.7 pp and 3.1 pp. Albania was the only country to fall back, by 1.2 pp.
At the pace of improvement from the past 5 years, Montenegro and Bosnia and Herzegovina would reach the EU level of the minimum wage in less than a decade (6 and 9 years). Serbia, Kosovo and North Macedonia would need 17-19 years, while Albania is furthest behind, at 47 years.
Average net pensions at PPS in 2025 were highest in Montenegro, at 803 EUR, followed by North Macedonia, at 715 EUR. Serbia and Bosnia and Herzegovina stood at 603 EUR and 577 EUR. Pensions in Kosovo and Albania were far lower, at 272 EUR and 260 EUR.
Relative to the EU average, Montenegro had the highest pensions, at 58% of the EU level, followed by North Macedonia, at 52%. Serbia and Bosnia and Herzegovina stood at 44% and 42%. Kosovo and Albania lagged far behind, at just 20% and 19% of the EU average.
5 of the 6 countries narrowed the pension gap to the EU in 2025. Montenegro and North Macedonia recorded the largest improvements, of 11.6 pp and 7.8 pp respectively. Bosnia and Herzegovina gained 3.3 pp, and Albania and Kosovo 1.3 pp each. Serbia stagnated relative to the EU average.
At the pace of improvement from the past 5 years, Montenegro would reach the EU level of pensions in 14 years and North Macedonia in 23 years. Bosnia and Herzegovina would need around 4 decades, while Albania, Kosovo and Serbia are more than 100 years away.
Output per worker at PPS in 2025 was highest in Montenegro and Serbia, at 50,660 EUR and 49,260 EUR. Kosovo and North Macedonia were virtually level, at around 46,100 EUR. Bosnia and Herzegovina stood at 41,300 EUR, while Albania had the lowest productivity, at 35,960 EUR.
Relative to the EU average, output per worker was highest in Montenegro and Serbia, at 59% and 58% of the EU level. Kosovo and North Macedonia were both at 54%, and Bosnia and Herzegovina at 48%. Albania was furthest behind, at 42% of the EU average.
4 of the 6 countries improved their productivity relative to the EU in 2025. Montenegro recorded the largest gain, of 2.1 pp, followed by Albania, Serbia and Kosovo, with gains of 0.8-1.1 pp. North Macedonia stagnated, while Bosnia and Herzegovina fell back by 0.7 pp.
At the pace of improvement from the past 5 years, Serbia and Albania would reach the EU level of output per worker in 23 and 28 years respectively. The other countries are much further away: Bosnia and Herzegovina and North Macedonia would need around 7-8 decades, Montenegro almost a century and Kosovo more than 100 years.
Gross investment (GFCF) per capita at PPS in 2025 was highest in Montenegro and Serbia, at 5,033 EUR and 4,931 EUR. Albania and North Macedonia followed, at 4,348 EUR and 4,278 EUR, while Kosovo and Bosnia and Herzegovina had the lowest levels, at 3,939 EUR and 3,912 EUR.
Relative to the EU average, GFCF per capita was highest in Montenegro and Serbia, at 56% and 55% of the EU level. Albania and North Macedonia stood at 49% and 48%, while Bosnia and Herzegovina and Kosovo were both at 44% of the EU average.
5 of the 6 countries narrowed the investment gap to the EU in 2025. Montenegro recorded the largest improvement, of 3.5 pp, followed by Bosnia and Herzegovina and Kosovo, with 1.9 pp and 1.7 pp. North Macedonia and Albania gained 1.2 pp and 0.9 pp. Serbia was the only country to fall back, by 2.3 pp.
At the pace of improvement from the past 5 years, Serbia and Kosovo would reach the EU level of GFCF per capita in around 2 decades (20 and 23 years), and Albania and Bosnia and Herzegovina in around 3 decades (28 and 30 years). North Macedonia would need 39 years, while Montenegro, despite having the highest level in the region, is more than 100 years away.
converge2.eu is an evidence-based initiative that sheds light on how the Western Balkans are converging with EU living standards. Our goal is to support evidence-based policymaking, informed journalism, and regional dialogue. We apply rigorous methodology, use comparable data, present them raw on a dahsboard and offer informed, independent and unbiased interpretation and advice.
