EUROSTAT: Money is not worth it, Albania remains the last in Europe for per capita consumption

2024-12-17 13:26:00, Ekonomi CNA

EUROSTAT: Money is not worth it, Albania remains the last in Europe for per

Although salaries, especially in the state sector, are constantly increasing, with them you can buy fewer products, making living more and more expensive, as prices are like in Europe, or even more expensive.

Eurostat has today published the indicators for income per capita and individual consumption per capita updated for 2023, where Albania remains last in Europe for both indicators. Data for Kosovo are missing.

In the indicator of individual consumption per capita (AIC), which measures the purchasing power of goods and services, Albania ranks last, with 41% of the European average, reducing it from the early figure that was published in June, when the indicator was 42 %, which indicates a decrease in real purchasing power. Even in 2022, this indicator was 41%. This indicator is one percentage point lower than Bosnia Herzegovina (in 2022 we were at the same levels). The highest level has 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 income per capita, Albania is the last in Europe, with an income of 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 49%, from 44% the previous year. The highest level in the region is in Montenegro, with 51%, 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 and 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%).

The economic growth driven mainly by the high flow of constructions and sales of real estate, 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 down compared to 2022's 4.86% expansion. 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 that is coming from construction is not managing 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 that households use, regardless of whether they are purchased and paid for by households directly, by the government, or by non-profit organizations. It can be considered as an indicator of the material well-being of families.

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% higher).

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 past 3 years, 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 past 3 years.

In 2023, compared to 2021, the relative volumes of GDP per capita increased in 12 countries. The biggest 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 Magazine