Despite the above-average economic growth and a decrease in population, a significant portion of the Albanian population, nearly half, still lives near the poverty line.
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According to recent data from INSTAT, the risk of poverty, referring to individuals at risk of being either severely deprived materially and socially, or living in households with very low employment intensity, affected 42.1% of the country's population in 2023, down from 44.5% in 2022, Monitor reports.
The monthly cost of living below which individuals are considered poor reached 22,547 lek per month, a rise of around 20% compared to 2022.
Official data reveals that 42% of Albanian households earn below this poverty threshold.
INSTAT has published the results of the 2023 Income and Living Conditions Survey (AANJ), which measures living standards, relative poverty, and material and social deprivation in Albanian households. The key indicators for monitoring relative poverty, income distribution, and other living standard measures align with the objectives of the Europe 2030 agenda.
In 2023, the poverty risk indicator in Albania stood at 19.7%, showing a decrease of 0.9 percentage points compared to 2022.
The poverty risk threshold for an individual in 2023 was estimated at 270,565 lek annually, compared to 225,931 lek in 2022.
Around 545,400 individuals in 2023 were considered at risk of poverty, a decrease of approximately 5.4% compared to 576,316 individuals in 2022.
The severe material and social deprivation rate, according to the Europe 2030 agenda, measures the percentage of the population unable to afford at least 7 out of 13 material and social deprivation categories. In 2023, this indicator was estimated at 34.8%, down from 37.0% in 2022.
For individuals aged 18-64, the proportion of those living in households with very low employment intensity in 2023 was 9.3%, compared to 10.4% in 2022, showing a decrease of 1.1 percentage points.
Social benefits, such as pensions and family allowances, included in disposable household income, contribute to reducing the risk of poverty.
In 2023, 36.4% of the population would have been considered at risk of poverty if all social benefits (including pensions) were excluded from disposable income.
The trend of decreasing poverty risk is observed across all age groups, with the most significant reduction in the 18-64 age group, where the risk of poverty in 2023 decreased by 1.0 percentage points compared to 2022.
The elderly (over 65) experienced a slight decrease in the poverty risk in 2023, with a reduction of 0.1 percentage points compared to 2022.
In 2023, the percentage of individuals at risk of poverty was lower for households without children (11.3%) compared to households with dependent children (23.9%).
The Gini index for income inequality in 2023 was estimated at 30.2%, showing a decrease of 0.8 percentage points from 2022. The S80/S20 quintile ratio, which measures income inequality, compares the highest and lowest quintiles of equivalent disposable income.
The Gini coefficient measures income inequality, where a value of 0% indicates complete equality, and 100% indicates complete inequality where only one person holds all the income.
In 2023, the average monthly disposable income per capita/equivalent increased by 18.1% compared to 2022.