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Albania is catching up with Europe in terms of prices, but not living standards

2024-07-01 07:19:00, Ekonomi CNA

Albania is catching up with Europe in terms of prices, but not living standards

Illustrative photo. taken from Google

Albania has remained in place to reach Europe for the level of income, but is making rapid steps to catch it at the level of prices.

According to Eurostat data, in 2023, food prices in Albania were 89.8% of the EU average, from 83.7%, which was this indicator in 2022.

From 2014 to 2023, the level of food prices in Albania has approached the EU average by 23 percentage points, since in 2014 food prices in our country were 66.8% of the EU average.

On the other hand, the Gross Domestic Product per capita in our country was 34% of the EU average in 2022, improving very little since 2014, when the GDP per capita was 30% of the EU average.

When it comes to the high level of food prices, Albania leaves behind 7 European countries, but in terms of per capita income, it ranks last in Europe. Bosnia-Herzegovina has surpassed the country, which according to previous data was at the same level as Albania.

Bosnia's income was 35% of the European average, North Macedonia's 42% of the EU average. Serbia had this indicator of 44%, while Montenegro has the highest level in the region, with 50%. Data for Kosovo are not available.

Bosnia had food prices at 83.9% of the EU average, Bulgaria at 86.5%, Montenegro 85.5%, Poland 75.8%, Romania 72.7%, North Macedonia 67.9% and Turkey at 63% of the EU average. .

In the food group, Albania has higher levels than in the EU for dairy products. Eurostat ranked Albania eighth in Europe for the high price level of milk and its by-products among 38 countries. Dairy prices in Albania were 20.7% higher than in the EU in 2023.

The expansion of export channels, the increase in the number of tourists and, on the other hand, the limited capacities to expand production, combined with the damages that are creating climate change have created the conditions for a new normality of prices in agricultural and livestock products.

Experts analyze that the increase in prices is coming from a multitude of internal and external factors, which combined together are making this phenomenon stable and irreversible./Monitor