INSTAT confirms the increase in poverty: About 623 thousand people live below the risk limit of being poor

2022-12-30 18:31:26Biznes SHKRUAR NGA REDAKSIA VOX
INSTAT confirms the increase in poverty: About 623 thousand people live below
poverty

Although the Albanian economy has had a relatively satisfactory growth in recent years and the contraction of the country during the pandemic was much lower than expectations, this still has not affected the improvement of the well-being of the citizens.

INSTAT has today published the results of the 2021 Income and Standard of Living Survey (IALS), which measures the standard of living, relative poverty and material deprivation in Albanian families. The survey showed that the indicator of the risk of being poor in Albania in 2021 is 22.0%, marking a slight increase of 0.2 percentage points, compared to 2020.

The limit of the risk of being poor for a person in 2021 is estimated at 191,791 ALL, compared to 186,242 ALL in 2020.

In 2021, an estimated 622,705 individuals live below the risk of being poor, compared to an estimated 621,504 individuals in 2020. The number of individuals at risk of being poor has increased by about 0.2%.

The deepened degree of material deprivation shows the percentage of individuals living in families who cannot afford at least 4 of the 9 categories of material deprivation1. This indicator was estimated at 35.2% in 2021, against 34.7% estimated in 2020, marking an increase of 0.5 percentage points.

The employment intensity of the family refers to the number of months that all individuals in the family have worked against the total number of months that theoretically should work during the year (12 months).

Families which are considered with very low employment intensity are defined at the 20% limit. Individuals aged 18-59, who live in families with very low employment intensity in 2021, according to estimates, make up 12.4%, compared to 11.6% in 2020, reflecting an increase of 0.8 points percentage.

At risk of being poor or social exclusion refers to individuals who are at risk of being poor, or deeply materially deprived, or living in households with very low employment intensity. In 2021, this indicator was estimated at 43.9%, against 43.4% estimated in 2020.

Social benefits, such as old-age and family pensions, included in disposable household income, reduce the risk of being poor.

If all types of social benefits were not included in the income level, the risk of being poor in 2021 is estimated at 39.0% compared to 25.2% that is estimated if the benefits were included in the income level social only from old-age and family pensions.

The risk of being poor by age group and gender is analyzed for three age groups. The increasing trend is observed in all three age groups, but a greater increase has the age groups 18-64 years old and 65 years old and older, where the risk of being poor in 2021, compared to 2020, has increased respectively by 0 ,2 percentage points in both age groups. The age group 0–17 years has undergone a slight increase in 2021 by 0.1 percentage points, compared to 2020.

The risk of being poor according to employment status, for employed persons aged 18 and over, in 2021 has decreased by 0.1 percentage points, compared to 2020. The risk of being poor among unemployed individuals has experienced an increase of 1.1 percentage points, while pensioners experienced an increase of 0.1 percentage points.

The percentage of individuals at risk of being poor by family type, in 2021, in families without dependent children, is estimated to be lower compared to families with dependent children, 12.8% and 25.9%, respectively of individuals. Families with dependent children are considered those families that have children under the age of 18 as well as persons aged 18 to 24 who live with at least one parent and are economically inactive. A year ago, these percentages were 13.1% and 25.9%, respectively.

Among the poorest in Europe

The comparison of the risk of being poor for 2021, between Albania and other countries of the Region and the European Union show that: The highest value of relative poverty is recorded in Latvia (23.4%), Romania (22.6%) ), Bulgaria (22.1%) followed by Albania (22%). The lowest poverty rates are recorded in the Czech Republic (8.6%), Finland (10.8%), Slovenia (11.7%), Slovakia (12.3%) and Denmark (12.3%). The average of the countries of the European Union (27 countries) is 16.8%./ Monitor


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