Data show Albania’s GDP per person 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
Tirana Times
TIRANA, June 21 – Albania’s Gross Domestic Product (GDP) per person expressed in purchasing power standards (PPS) in 2010 was less than one third of the EU-27 average and remains even below regional competitor Bosnia and Herzegovina, according to a report released by Eurostat, the statistical office of the European Union this week. The report covering the 27 EU member states, three EFTA countries, four EU candidate countries and three Western Balkans countries aspiring to join the EU placed Albania at the bottom of the 35-country list with a score of 29 percent of the EU 27 average of GDP per capita expressed in purchasing power standards. Bosnia and Herzegovina and Serbia, which are also potential candidates to join the European Union scored 30 and 35 percent of the EU 27 average respectively. The GDP per capita in PPS in neighboring Macedonia, and Montenegro, already EU candidate countries were at 35 percent and 40 percent, respectively.
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 and 29 percent in 2010.
Based on first preliminary estimates for 2010, Gross Domestic Product (GDP) per capita expressed in Purchasing Power Standards (PPS) varied from 43 percent in Bulgaria to 283 percent of the EU27 average in Luxembourg. 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 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). 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. Bosnia and Herzegovina, which is also benefiting from visa free travel in the Schengen area, 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.
Meanwhile, Albania’s price level index (PLI) for food and non-alcoholic beverages is at 72 percent of the EU 27, considerably more expensive compared to neighboring Macedonia, whose index was at 52 percent, and even some EU members such as Poland, Romania, Bulgaria, according to Eurostat.
Albania’s index in this category falls between Serbia and Lithuania, where food and non-alcoholic beverages are at 70% and 74% of the EU average respectively, concluded a Eurostat survey comparing price levels in 37 European countries for 2009.
