The report shows that in 2009 the region of Tirana, where 25 percent of the country’s 3.2 million population lives, accounted for 37.9 percent of the Gross Domestic Product while the GDP per capita was 51.2 percent above the country’s average
Tirana Times
TIRANA, Sept. 15 – A regional accounts report, the first of this kind published by INSTAT, has revealed the huge gaps of income and welfare across Albania’s 12 administrative regions. This first report, which is a commitment under the Stabilization and Association Agreement Albania has signed with the European Union, provided Albania’s regional estimates from 2000 to 2009, dividing Albania into three statistical units NUTS level 2 (north, center and south) and NUTS level 3 into 12 statistical regions with the approval of Eurostat, the statistical office of the European Union.
The report shows that in 2009 the region of Tirana, where 25 percent of the country’s 3.2 million population lives, accounted for 37.9 percent of the Gross Domestic Product while the GDP per capita was 51.2 percent above the country’s average. “Some of the main factors are the concentration of gross value added of the construction branch, the concentration of services sector (banking, insurance, and telecommunications), high compensation of employees and high rate of commuting from other prefectures,” said the report.
Tirana’s GDP per capita in 2009 was at 4,126 Euros, 2.2 times higher than the GDP per capita of the northeastern region of Dibra, the country’s poorest. Second came the region of Durres with a GDP per capita of 2,566 Euros, accounting for 94 percent of Albania’s 2,728 Euros per capita. Interestingly enough, the poor northeastern region of Kukes, which has the lowest population and accounts for only 2.3 percent of the GDP, came third with GDP per capita of 2,537 Euros.The report also reveals the gaps between central Albania (the regions of Tirana and Elbasan) and northern and southern Albania where GDP per capita differs by 1,500 Euros per inhabitant.In 2009, the central region had a 46.4 percent share in the total GDP followed by the southern region with 29.2 percent and the northern region with 24.3 percent.
However, with 2009 economic growth of 3.3 percent, the southern region had the biggest contribution of 1.27 percent, followed by the northern region with 1.21 percent and central region with 0.84 percent.
Albania was one of the few countries to register positive growth rate in the 2009 when the global financial crisis broke out.
In 2009, Albania’s GDP per capita measured in purchasing power standards (PPS) was at 27.6 percent of the EU 27 average, varying from 22.9 percent in the northern Albanian region to 23.1 percent in southern region and 35.8 percent in the central region.
Latest Eurostat data show 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.
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.
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 and Bulgaria, according to Eurostat.
