Even machinery and equipment cost businesses more than the EU, the fifth most expensive in Europe

2026-06-19 07:18:43, Ekonomi CNA

Even machinery and equipment cost businesses more than the EU, the fifth most

It is not only Albanian consumers who pay more than the European Union average for many products, especially food.

Businesses also buy machinery and equipment more expensively than the European Union average, this being an important factor that makes them competitive and inhibits investments in technology. According to data published by Eurostat on comparative investment price levels in 2024, the price index for the category “machinery, equipment and other products” in Albania was 111, or 11% above the EU average, which is taken as a base of 100.

Albania thus ranks among the countries with the highest prices in Europe for this category of investments, leaving behind even some developed countries of the European Union and the most expensive in the Balkans, which increases costs, not having a competitive advantage in the Balkans or in Europe.

Compared to EU countries, Albania is the third most expensive and overall in Europe it is fifth, after Switzerland (121), Iceland (117), Malta (121) and Denmark (114). The cost of this item, which includes industrial machinery, production lines, electrical and electronic equipment, computers, vehicles and other tools used by businesses, is higher than in countries such as France, Germany, Italy (see chart).

According to Eurostat, Figure 2 presents price level indices for machinery and equipment, which include metal products and equipment, electrical and optical equipment, and means of transport.

Even machinery and equipment cost businesses more than the EU, the fifth most

Of the 36 countries analyzed, the most expensive country for machinery, equipment and other products was Switzerland, with an index of 124, while the cheapest was Turkey, with an index of 67.

The main feature of this graph is that prices for this product category are relatively similar across countries, unlike construction, where the differences are larger.

Expensive for machinery, but cheap for investments

While the prices of machinery and equipment are high, for construction, Albania ranks among the cheapest, at 53% of the EU average, leaving behind only Montenegro (51) and Bosnia and Herzegovina (48), with the latter being the cheapest in Europe.

Figure 3 presents price level indices for construction.

The most expensive countries for construction investments were Switzerland and Germany, with indices of 146 and 145 respectively, followed by Luxembourg and Sweden.

Even machinery and equipment cost businesses more than the EU, the fifth most

The fact that Albania is cheap to build makes it rank below the EU average in terms of the investment indicator, which measures residential and non-residential buildings, engineering works and machinery and equipment and other products, at 69% of the EU average. However, it ranks second most expensive in the region, after Serbia (70%).

According to Eurostat, Figure 1 presents the price level indices for total investment in 2024. Switzerland and Germany recorded the highest price levels for investment, with indices of 130 and 122, respectively.

Even machinery and equipment cost businesses more than the EU, the fifth most

At the other end, the least expensive countries for investment were Turkey and Bosnia and Herzegovina, with indices of 59 and 66, respectively.

The indices are based on two price data surveys, carried out in 2024 under the Eurostat-OECD Purchasing Power Parities (PPP) Programme. The two surveys cover construction — dwellings, non-residential buildings and civil engineering works — as well as machinery, equipment and other products. The results are presented in the form of price level indices, which compare countries' price levels with the EU average, Eurostat explains./Monitor.al