
Although salaries, especially in the public sector, are constantly increasing, they can buy fewer products, making living increasingly expensive, while prices are the same as in Europe, or even more expensive.
Eurostat has today published updated indicators for per capita income and per capita individual consumption for 2023, with Albania remaining last in Europe for both indicators. Data for Kosovo is missing.
In the individual consumption per capita indicator (AIC), which measures the purchasing power of goods and services, Albania ranks last, with 41% of the European average, down from the previous figure published in June, when the indicator was 42%, which indicates a decline in real purchasing power. Even in 2022, this indicator was 41%. This indicator is one percentage point lower than Bosnia and Herzegovina (in 2022 we were at the same levels). The highest level is in Montenegro with 64% (from 63% in 2022), followed by Serbia with 55%, with an increase of 1 percentage point, and North Macedonia with 49%, from 50% in 2022.
Even in the other indicator, that of per capita income, Albania is last in Europe, with income equal to 36% of the EU average, at the same level as Bosnia and Herzegovina.
North Macedonia had an income of 41% of the EU, the same as the previous year. Serbia had this indicator of 49%, up from 44% the previous year. Montenegro has the highest level in the region, with 51%, up from 50% the previous year.
According to Eurostat's explanation, although GDP per capita is an important and widely used indicator of the level of economic well-being of countries, consumption per capita may be more useful for comparing the relative well-being of consumers in different countries.
Prices in Albania are getting more expensive compared to the EU average. In 2023 they were 58% of the European average, up from 54% in 2021. They remain the second most expensive in the region after Serbia (59%) and much higher than in North Macedonia (48.7%).
Economic growth driven mainly by the high influx of construction and real estate sales, or the high number of tourists, does not seem to have improved the well-being of Albanians in the last two years.
During 2023, the Albanian economy grew by 3.4%, slowing compared to the 4.86% expansion in 2022. About half of this growth came from construction and real estate, which expanded by 9.7% and 11.3% respectively. It seems that this growth coming from construction is failing to improve the well-being of Albanians, who continue to remain the poorest in Europe.
europe
In 2023, current individual consumption (AIC) levels in EU countries ranged between 70% and 136% of the EU average. AIC includes all goods and services used by households, regardless of whether they are purchased and paid for by households directly, by government or by non-profit organisations. It can be considered as an indicator of the material well-being of households.
Last year, 9 countries recorded an AIC per capita above the EU average. Luxembourg scored the highest at 36% above the EU average. Followed by the Netherlands and Germany (both 19% above).
The lowest levels of AIC per capita were recorded in Hungary and Bulgaria (both 30% below the EU average) and Latvia (26% below).
Over the last 3 years, the AIC per capita relative to the EU average has changed in most EU countries. Between 2021 and 2023, AIC levels increased in 15 EU countries, notably in Ireland (99% of the EU average in 2023 compared to 91% in 2021), Cyprus (100% vs 94%) and Malta (90% vs 85%).
On the other hand, AIC levels decreased in 11 EU countries. The largest decreases were recorded in Denmark (108% in 2023 vs. 122% in 2021), Sweden (106% vs. 112%), Lithuania (88% vs. 93%) and the Czech Republic (81% vs. 86%).
Luxembourg recorded the highest level of GDP per capita expressed in purchasing power standards in the EU, at 137% above the EU average, ahead of Ireland (113%) and the Netherlands (33%).
On the other hand, Bulgaria (36% below the EU average), Greece (31%) and Latvia (30%) recorded the lowest levels.
GDP per capita relative to the EU average has also changed significantly for most countries over the last 3 years.
In 2023, compared to 2021, relative volumes of GDP per capita increased in 12 countries. The largest increases were recorded in Portugal (81% of the EU average in 2023 compared to 74% in 2021), Spain (91% vs 85%), Romania (78% vs 72%) and Croatia (76% vs 70%).
The level of GDP per capita has fallen significantly in Luxembourg (237% vs 260%), Ireland (213% vs 226%), Denmark (125% vs 134%) and Sweden (114% vs 121%)./ monitor