TIRANA TIMES
TIRANA, Dec. 20 – Albania’s Gross Domestic Product (GDP) per inhabitant expressed in purchasing power standards (PPS) is less than one third of the EU-27 average and even below regional competitor Bosnia and Herzegovina which stood at 31 percent in 2009, according to recent data published by Eurostat, the statistical office of the European Union.
Data show Albania’s GDP per inhabitant 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. However, Albania’s index stands 5 percent below neighbouring Macedonia, and 10 percent below new EU candidate Montenegro. Serbia’s rate is at 41 percent, compared to 46 percent for Turkey and 65 percent for Croatia.
These data for 2009, 2008 and 2007, published by Eurostat, the statistical office of the European Union, are based on revised purchasing power parities, and the latest GDP and population figures. They cover the 27 EU Member States, three EFTA Member States, three EU Candidate Countries and four Western Balkan countries.
In 2009, the Gross Domestic Product (GDP) per inhabitant in Luxembourg1, expressed in purchasing power standards2 (PPS), was more than two and a half times the EU27 average, while the Netherlands recorded a level more than 30% above the average. Ireland, Austria and Denmark were between 20% and 30% above the EU27 average, while Sweden, Germany, Belgium, Finland and the United Kingdom were between 10% and 20% above average.
The Purchasing Power Standard (PPS) is an artificial currency unit that eliminates price level differences between countries. Thus one PPS buys the same volume of goods and services in all countries. This unit allows meaningful volume 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). The level of uncertainty associated with the basic price and national accounts data, and the methods used for compiling PPPs imply that differences between countries that have indices within a close range should not be over-interpreted.
Albanian GDP
Latest Eurostat data show Albania 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. Bosnia and Herzegovina, which is also benefiting visa free travel in the Schengen area along with Albania since mid-December 2010, had a GDP per capita at 3,192 euros compared to the EU 27 average of 23,500 euros.
Albania’s GDP in 2009 dropped to 8,5 billion euros, down from 8.8 billion in the previous year reflecting the effects of the global crisis although the country’s economy was one of few to record a positive 3.3 percent growth.
