World Bank Report: 20% of Albanian population in poverty by 2025

Poverty is expected to decrease by 1.1 percentage points this year, but 20% of the country's population will still be affected by this phenomenon, the World Bank predicts in its latest summary published for Albania.

After an increase in 2020, poverty is estimated to have resumed its downward trend, driven by the recovery from the pandemic.

Poverty measured by income ($6.85 PPP per day) fell from 41.6% in 2016 to 32.2% in 2019.

After increasing to 33.1% in 2020 due to the November 2019 earthquake and the COVID-19 pandemic, poverty is estimated to have fallen to 22.5% in 2023, due to the increase in GDP per capita, and is expected to decrease further by 1.5 percentage points in 2024 and 1.1% in 2025, the Bank analyzes.

Although inequality has declined, it remains at the highest level in the Western Balkans after Montenegro (36.9).

Albania also has a high gap compared to the global standard of well-being of 25 USD per day per person. Our country's income must increase by at least three to reach this standard.

The employment rate reached an average of 68.6% in 2024, with an increase of 2 percentage points in male employment, while for women there was a slight decrease of 0.3 percentage points.

Unemployment fell to 9.4%, but youth unemployment (ages 15–29) remained high at 18.9%. The average wage increased by 9.8% during 2024, with growth in all economic sectors.

The Bank notes that Albania possesses untapped human capital potential that can drive growth and development, but the country faces challenges such as emigration, economic inactivity, and underutilization of existing resources.

Increasing the inclusion of educated individuals in the labor market, through improving employment conditions and creating quality jobs, would bring not only immediate economic benefits through higher productivity, but also maximum return on investments made in education.

The Bank suggests that promoting women's economic participation is essential for Albania's journey towards high-income country status.

Closing the gender gap in employment alone could bring a significant 12% increase in GDP per capita in the long term.

Unleashing women's potential through education and inclusion in the labor market is a necessary factor to lift the country out of poverty and towards prosperity, suggests the World Bank./ Monitor