The quality of infrastructure is instrumental for economic competitiveness, as gaps can limit trade, integration into global value chains and knowledge diffusion. Upgrading infrastructure and promoting connectivity can lead to more efficient, sustainable and integrated transport systems, energy, and digital networks, as well as facilitate regional collaboration and knowledge sharing, thereby stimulating economic activity and supporting competitiveness in the Western Balkan economies.

Human capital — the capabilities and skills of individuals and populations — is a key driver of economic prosperity and productivity. Equipping individuals with comprehensive skillsets that are up to date is essential for ensuring citizens’ preparedness for future as well as increasing the economic potential of the Western Balkans.

Creating an enabling environment for private businesses play a crucial role in unlocking the potential for economic growth and development. In this respect, ensuring a level playing field between firms, specifically through reducing informality and ensuring that state-owned enterprises operate under the same conditions as private businesses, is a prerequisite for a more competitive business environment in the Western Balkans.

Embracing digital transformation can bolster competitiveness by increasing firms’ productivity and efficiency, modernising government operations and services, expanding access to global markets, and enhancing connectivity and inclusion. The Western Balkans’ ability to build a robust digital economy and integrate into the European digital market will facilitate their long-term economic development.

Effective policies driving the green transition are vital for balancing environmental protection with sustainable growth and economic competitiveness. Through the development of comprehensive greening frameworks, economies can fulfill international climate neutrality pledges, harness the benefits of the circular economy, mitigate air, water, and soil pollution, promote sustainable food production and supply methods, and preserve biodiversity while restoring ecosystems.