Albania ranks highest in governance among Southeast European countries in the 2026 Bertelsmann Transformation Index (BTI), while also placing narrowly ahead in political transformation, according to the latest regional comparison.
The BTI, compiled by a German think tank, assesses the quality of democracy, economic performance and governance across 137 countries.
Albania scored 7.70, followed closely by North Macedonia at 7.65 and Montenegro at 7.40. Kosovo ranked fourth with 6.90, ahead of Bosnia and Herzegovina (5.95) and Serbia (5.18), which placed last in the regional group.
Montenegro led in economic transformation with a score of 7.50, followed by North Macedonia (7.18) and Albania (7.11). Serbia (6.79), Bosnia and Herzegovina (6.57) and Kosovo (6.21) completed the ranking.
Albania again topped the list with 6.71, ahead of North Macedonia (6.07) and Montenegro (5.90). Kosovo scored 4.81, while Bosnia and Herzegovina (4.03) and Serbia (3.96) trailed behind.
The BTI has been published biennially since 2006 and evaluates political and economic transformation as well as governance performance. The 2026 edition covers the period from Feb. 1, 2023 to Jan. 31, 2025.
The index is based on extensive country reports produced in cooperation with nearly 300 experts from universities and think tanks in more than 120 countries. It uses primary data to assess governance capacity and reform progress in transitioning economies.
OECD member states, including Germany and the United States, are not part of the BTI sample.