545,400 Albanians were at the poverty line in 2023

Despite above-average economic growth and population reduction, a large portion of the country's population, nearly half, still lives below the poverty line.

According to current INSTAT data, the risk of being poor, which refers to individuals at risk of being poor, or deeply materially and socially deprived, or living in families with very low employment intensity, was present in 42.1% of the country's population in 2023, compared to 44.5% estimated in 2022.

The monthly cost of expenses below which you are considered poor reached 22,547 lek per month, an increase of about 20 percent compared to 2022.

According to official data, 42% of Albanian families have a monthly income at this limit.

INSTAT publishes the 2023 results of the Income and Living Standards Survey (ILSS), which measures the standard of living, relative poverty, and material and social deprivation in households in Albania.

The main indicators for monitoring relative poverty, income distribution and other indicators of living standards are based on the Europe 2030 agenda target.

In 2023, the at-risk-of-poverty indicator in Albania is 19.7%, a decrease of 0.9 percentage points compared to 2022.

The poverty risk threshold for a person in 2023 is estimated at 270,565 lek per year compared to 225,931 lek in 2022;

Around 545,400 individuals in 2023 were estimated to be below the at-risk-of-poverty threshold, compared to around 576,316 individuals estimated in 2022, an indicator which decreased by around 5.4%;

The deepening rate of material and social deprivation according to the Europe 2030 agenda represents the percentage of the population that does not cope with at least 7 out of 13 categories of material and social deprivation. For the year 2023, this indicator is estimated at 34.8%, compared to 37.0% estimated in 2022.

According to the Europe 2030 agenda, individuals in the 18-64 age group living in households with very low employment intensity are estimated to account for 9.3% in 2023, compared to 10.4% in 2022, a decrease of 1.1 percentage points.

Social benefits, such as old-age and family pensions, included in disposable household income, reduce the risk of being poor.

In 2023, 36.4% of the population would be assessed as at risk of being poor, if all social benefits (including old-age/survivor pensions) were excluded from disposable income.

The downward trend is observed in all three age groups, but a greater decrease is seen in the 18-64 age group, where the risk of being poor in 2023, compared to 2022, has decreased by 1.0 percentage points in this age group.

The age group over 65 years old has suffered a slight decline in 2023 by 0.1 percentage points, compared to 2022.

In 2023, the percentage of individuals at risk of being poor, in households without dependent children, is estimated to be lower compared to households with dependent children, respectively 11.3% and 23.9% of individuals.

In 2023, the Gini inequality index was estimated at 30.2%, decreasing by 0.8 percentage points from 2022. The S80/S20 quintile ratio is an indicator that measures income inequality by the ratio of the highest level of equivalized disposable income (the last quintile) to the lowest level of equivalized disposable income (the first quintile).

The Gini coefficient measures inequality in income distribution, where a value of 0% expresses complete equality and all individuals have the same income, while a Gini coefficient equal to 100% expresses complete inequality where only one person has all the income.

In 2023, the average monthly disposable income per capita/equivalent increased by 18.1%, compared to 2022./ Monitor