Eurostat: Albania, penultimate in Europe for well-being

A chart republished by the Ministry of Finance a few days ago highlighted that Albania is confirmed as one of the strongest and most stable economies in the region, as it is expected to have a growth of 3.4% in 2026, the second highest in the region after Kosovo (chart at the bottom).

But, it seems that neither this economic growth nor the reduction in population that dropped from 2.8 million to 2.38 million in a decade over two censuses have managed to improve the per capita income indicator nor the quality of life of Albanians.

Newly published data from Eurostat show that Albania's per capita income, measured by gross domestic product per capita, was 43% of the European Union average, with a slight improvement of 1 percentage point by 2024.

Albania is on par with North Macedonia and is only behind Bosnia and Herzegovina (36% of the EU average). The region is led by Montenegro with 54%, followed by Serbia with 52%.

In the other indicator, that of actual individual consumption (AIC), which according to Eurostat is a better indicator for measuring well-being, as it takes purchasing power into account, Albania ranks lower than North Macedonia, with the indicator being 48% of the EU average, compared to 50% for North Macedonia, which shows that although they have the same income, the purchasing power of Albanians is lower.

In the region, Montenegro is again in the lead, with 71% of the EU average and a difference of over 20 percentage points with us, which shows how little value money has in Albania. For Serbia, the indicator is 57% and the last is Bosnia and Herzegovina with 44%. Data for Kosovo is missing.

Actual Individual Consumption (AIC) measures the goods and services that individuals actually consume, regardless of whether they are paid for directly by households or financed by the state, such as education and healthcare.

For this reason, Eurostat uses the AIC as a closer indicator of household material well-being and real purchasing power, compared to GDP per capita, which measures economic output.

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In 2025, real individual consumption per capita, measured in purchasing power standards (PPS), ranged from 73% to 145% of the European Union average in the 27 member states.

Eight EU countries recorded per capita consumption levels above the EU average. The highest levels were recorded in Luxembourg, where consumption was 45% above the EU average, followed by Germany with 20% and the Netherlands with 19%.

On the other hand, 19 countries remained below the European average. The lowest levels were recorded in Hungary and Latvia, where per capita consumption was 27% lower than the EU average, while Estonia ranked right behind them at 26% below the average.

Large differences also in GDP per capita

Even Gross Domestic Product (GDP) per capita, one of the main indicators of economic activity, showed significant differences between EU countries.

Ten member states recorded GDP per capita above the EU average. Luxembourg leads with a level 139% higher than the EU average, followed by Ireland with 138% and the Netherlands with 33%.

At the bottom of the ranking are Greece and Bulgaria, where GDP per capita was 32% below the EU average, while Latvia ranked next with 29% below the European average./Monitor