The region of Tirana, where a quarter of the country’s 2.8 million resident population lives, accounts for more than one-third (38 percent) of the country’s GDP with the services sector dominating with 67 percent.
By Ervin Lisaku
TIRANA, Aug. 6 – GDP per capita in Albania’s 12 regions varies from 67 percent of the country’s average in the northeastern Dibra region to 141 percent in the central Tirana region, according to a regional GDP report for 2012 published by the country’s state statistical Institute, INSTAT. This means the gap between the country’s poorest and richest region is twofold with the GDP per capita at around 310,000 lek (Euro 2,182) and 650,000 lek (Euro 4,578) respectively, considerably narrowing compared to 2011, when the GDP per capita in the region of Dibra, which mainly relies on mining and agriculture, was at 59.8 percent of the country’s average.
The INSTAT report which has divided the country into three statistical units shows the central region which includes only Tirana and Elbasan has a GDP per capita at 23 percent above the country’s average but at only 36 percent of the EU 28 average.
The GDP per capita in the southern statistical unit which includes the regions of Berat, Fier, Gjirokastra, Kor衠and Vlora stands at 8.5 percent below the country’s average and at 27 percent of the EU 28 average.
The northern statistical unit, which includes, Durres Shkodra, Lezha, Kukes and Dibra had a GDP per capita at 80.7 percent and at 23.8 percent of the EU 28 in 2012, according to INSTAT data.
Albania’s GDP per capita rose to 460,000 lek (Euro 3,244) in 2012, up 2.8 percent compared to 2011.
The region of Tirana, where a quarter of the country’s 2.8 million resident population lives, accounts for more than one-third (38 percent) of the country’s GDP with the services sector dominating with 67 percent. Second comes the southeastern region of Fier with a 12.4 percent contribution to the GDP, followed by Durres with 9.9 percent, Elbasan with 7.8 percent, and Gjirokastra and Kukes closing the 12 region-list with 2.2 percent and 2.1 percent respectively.
The INSTAT data show Tirana’s GDP in 2012 was at 3.6 billion euros, followed by Fier with 1.17 billion Euros, and Durres with 931 million euros.
INSTAT data shows the services sector composed of “trade, hotels and restaurants,” “transport,” “post and telecommunication” and “other services” accounted for 51.6 percent of the GDP in 2012 followed by agriculture with 21.8 percent of the GDP, industry with 14.4 percent and construction with 12.2 percent.
Back in 2011, a regional accounts report, the first of this kind published by INSTAT, revealed the huge gaps of income and welfare across Albania’s 12 administrative regions. The report, which is a commitment under the Stabilization and Association Agreement that Albania has signed with the European Union, provided Albania’s regional estimates from 2000 to 2009, dividing Albania into three statistical units (north, center and south) and 12 statistical regions with the approval of Eurostat, the statistical office of the European Union. The report showed that in 2009 the region of Tirana accounted for 37.9 percent of the GDP while the GDP per capita was at 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 regions,” said the report. In its latest review, INSTAT revised the GDP for 2013 upward to 1.42 percent, up from an earlier 0.44 percent, giving a wrong impression of 2013 as the worst year in Albania’s economy as the 2012 growth rate is estimated at only 1 percent. Revised data shows the Albanian economy grew by 3.7 percent in 2009, 3.75 percent in 2010, 2.17 percent in 2011 and only 1 percent in 2012.
The Albanian economy has grown by an average of 2.6 percent annually during the 2009-2013 crisis years compared to a pre-crisis decade of an average 6 percent, being one of the best performers in the region, according to INSTAT.
GDP per capita at 30% of EU 28
Albania’s GDP per capita, a measure of economic activity, and the actual individual consumption, an indicator of the material welfare of households, ranks among the poorest in Europe, at almost a third of the EU 28, according to the latest Eurostat data.
Albania’s GDP per capita expressed in purchasing power standard, an artificial currency unit that eliminates price level differences between countries, was at 30 percent of the EU 28 in 2013, leaving behind only peer EU potential candidate Bosnia and Herzegovina with 29 percent of the EU 28 in the list.
Meanwhile, Albania’s actual individual consumption per capita in PPS was at 36 percent of the EU 28 in 2013, ranking Albania on the bottom of a 37-country list which includes 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.
While Albania has one of Europe’s lowest GDP per capita, price levels for consumer goods and services are also among the lowest in 37 European countries, according to a recent report published by Eurostat, the statistical office of the European Union.
At 51 percent of the EU 28, Albania’s price level indices for consumer goods and services in 2013 was higher only compared to Macedonia’s 47 percent and Bulgaria’s 48 percent in the 37-country list. The results reconfirm that Albania is one of the cheapest countries to live in across Europe although it has the lowest wages in the Balkans.
Price levels for consumer goods and services among EU candidates and potential candidates in the region varied from 47 percent in Macedonia, to 53 percent in Bosnia and Herzegovina, 54 percent in Serbia, 56 percent in Serbia and 64 percent in Turkey.
