At 30 percent of the EU-28, Albania GDP per capita ranks better only compared to peer EU potential candidate Bosnia and Herzegovina 29 percent but lags behind four other EU candidates
TIRANA, Dec. 17 – Albania’s GDP per capita expressed in purchasing power standards remained unchanged at 30 percent of the EU-28 in 2012, ranking on the bottom of 39 country-list, according to a report published by Eurostat, the statistical office of the European Union.
The report measuring GDP per capita in purchasing power standards, an artificial currency unit that eliminates price level differences between countries, shows that at 30 percent of the EU-28, Albania’s GDP per capita ranks better only compared to peer EU potential candidate Bosnia and Herzegovina 29 percent but lags behind four other EU candidates Macedonia, Serbia, Montenegro and Turkey whose GDP per capita ranks from 35 percent to 54 percent of the EU 28.
Albania’s Actual Individual Consumption per capita at 35 percent of the EU-28 ranks the country at the bottom of the 39 country-list, worse even compared to Bosnia and Herzegovina’s 37 percent.
While GDP per capita is mainly an indicator reflecting the level of economic activity, Actual Individual Consumption (AIC) per capita is an alternative indicator better adapted to describe the material welfare situation of households.
The Eurostat data are based on revised purchasing power parities, and the latest GDP and population figures. They cover the 28 EU member states, three EFTA members, four EU candidate countries and two potential candidate countries.
Eurostat estimates Albania’s GDP per capita rose to 3,344 euros in 2012, up from 3,329 euros in 2011, ranking the lowest among EU candidate and potential candidate countries and at only 13 percent of the 24,600 euros of the EU- 27 average.
Consumer price levels among the lowest
Price levels of food, beverages and tobacco in Albania are among the lowest in the whole Europe and at around two-thirds of the EU 27, according to an earlier Eurostat report.
At 68 percent of the EU 27 in 2012, food and non-alcoholic beverage prices in Albania are on par with EU member Bulgaria and higher compared to Macedonia, Poland, and Romania at 58 percent, 61 percent and 67 percent respectively.
‘Bread and cereals,’ ‘meat,’ ‘milk’, ‘cheese and eggs’ prices in Albania stand at 66, 52 and 84 percent of the EU 27. At 72 percent of the EU 27 average Albania has the second lowest alcoholic beverages after neighboriung Macedonia. Tobacco prices in Albania stand at 27 percent of the EU, also the second lowers among 37 surveyed countries. At around 40 percent, Albania has one of the world’s highest smoking rates.
While Albania’s purchasing power stands at less than one-third of the EU 27 average, price levels for consumer goods and services are estimated at 51 percent, showing that the cost of living in Albania is relatively high compared to the small income.
A previous Eurostat report showed Albania’s total score at 51 percent of the EU 27 average in 2011 is higher than Macedonia’s 45 percent and on par to Bulgaria, both of which have a GDP per capita expressed in purchasing power standards 5 to 14 percent higher than Albania.
Detailed Eurostat data show Albania’s “food and non-alcoholic beverages” which are the key contributors to the Consumer Price Index are priced at 70 percent of the EU 27 average. Clothing prices also stand at 72 percent of the EU 27 average.
Albania’s highest price levels are registered in the “consumer electronics” and “personal transport equipment” which stand at 108 percent and 98 percent of the EU average, respectively.
The lowest price levels are found in the “restaurants and hotels” and “alcoholic beverages and tobacco” groups which stand at 42 percent and 50 percent of the EU 27 average.
The overall price levels included in the Eurostat report relate to the concept of household final consumption expenditure, which consists of all expenditure incurred by households on goods and services for consumption, including also rents for housing.
