Eurostat: Albania’s purchasing power 69% below EU 27 average

TIRANA, June 20 – Albania’s Gross Domestic Product (GDP) per capita expressed in purchasing power standards (PPS) in 2011 slightly recovered to 31 percent of the EU 27 but ranked second from bottom in a 37 country list, according to a report released by Eurostat, the statistical Office of the European Union this week. Data show Albania’s GDP per capita in PPS ranks better only compared to also potential EU candidate Bosnia and Herzegovina’s 29 percent, remaining at less than one-third of the EU 27 average. Compared to the four EU candidate countries – Serbia, Macedonia, Montenegro, and Turkey – Albania’s PPS stands 4 to 21 percent below.
Data show Albania’s GDP per capita in PPS climbed from 23 percent of the EU-27 average in 2007 to 26 percent at the end of 2008 before reaching 27 percent in 2009 and 29 percent in 2010.
The Purchasing Power Standard (PPS) is an artificial currency unit that eliminates price level differences between countries. One PPS buys the same volume of goods and services in all countries, allowing meaningful comparisons of economic indicators across countries. Aggregates expressed in PPS are derived by dividing aggregates in current prices and national currency by the respective Purchasing Power Parity (PPP).
Meanwhile, Actual Individual Consumption per capita, an alternative welfare indicator, better adapted to reflect the situation of households, shows Albania ranks worst in the 37-country list with 34 percent of the EU 27 average compared to Bosnia’s 35 percent.
The Eurostat report covering 27 EU Member States, three EFTA countries, one acceding state, four candidate countries and two potential candidate countries showed GDP per capita expressed in PPS varied from 45% to 274% of the EU27 average across the Member States. An earlier Eurostat report has shown Albania’s price levels for consumer goods and services are among the lowest in Europe but remain high compared to the country’s revenues. Price levels for consumer goods and services in Albania during 2010 were at 50 percent of the EU 27 average, the second lowest in the 37 country list after neighboring Macedonia.
Food and non-alcoholic beverages were priced at 72 percent of the EU 27 average, the same to EU member Poland, and higher compared to Bulgaria, Romania, Macedonia and Serbia.
Latest Eurostat data show Albania’s GDP per capita dropped to 2,661 Euros in 2009, down from 2,784 in 2008, remaining better only compared to Kosovo which registered 1,790 Euros.