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Although the country has seen satisfactory growth in recent years, the income of Albanian families is insufficient to afford a normal life compared to other countries in Europe and even the region.
Incomes, in addition to being low, are further devalued by high prices.
Eurostat has published the indicator of equivalent disposable income per household member, which shows the total income of a household after taxes that is available for spending or saving, divided by the number of household members converted to adults[ 1].
This indicator is measured according to the purchasing power parity standard, or PPP (purchasing power standard). Theoretically, a PPS can buy the same amount of goods and services in each country.
Albania had a median disposable income indicator in 2020 (the most recent year when income is available) at 4,358, which is the lowest in Europe (data for Kosovo and Bosnia Herzegovina are missing). The median indicator means that half have more than 4358 PPS and half have less.
Compared to the European median in the same year (17,926 PPS), a member of an Albanian family has only 24% of the income available. As a result, the purchasing power of an Albanian family is four times lower than that of the European average.
Although the per capita income is as much as 32% of the European average, when the comparison is made according to purchasing power, the indicator is as low as 23%, as a result of the fact that prices are mostly the same as EU countries (especially in supermarkets) , while the income is much lower.
In comparison with Germany, for example, the purchasing power is 5.5 times lower, with Italy 4 times less, with Greece 2.3 times less.
North Macedonia (5,988 PPS), Turkey (6,210 PPS), Montenegro (6,328), Serbia (6,968 PPS) are ranked the second lowest after Albania, for median disposable income.
europe
According to Eurostat In 2022, average equivalent disposable income in the EU was 18 706 purchasing power standards (PPS) per inhabitant, increasing from 18 011 PPS recorded in 2021.
At national level, the EU countries with the highest average disposable income in 2022 were Luxembourg (PPS 33,214), the Netherlands (PPS 25,437), Austria (PPS 25,119), Belgium (PPS 24,142), Denmark (23 244). PPS) and Germany (23 197 PPS).
In contrast, Bulgaria (9,671 PPS), Slovakia (9,826 PPS), Romania (10,033 PPS), Hungary (10,217 PPS) and Greece (10,841 PPS) reported the lowest values.
Equalized average disposable income, expressed in PPS, is based on income distribution, as well as family size and composition. The PPS unit takes price level variations into account, ensuring that data is comparable across countries.
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