IMF: Kosovo with lowest per capita income in Europe

IMF data shows that Albania and Kosovo continue to remain last in Europe on a prudent per capita income index according to the equality of purchasing power, measured in international dollars.

In 2023, this index for Albania totaled $19.5,000 (the market eliminates price differences between states). Albania leaves behind Kosovo, which has the figure of $15.8 thousand.

The highest per capita income rate in the region, according to the equivalent of purchasing power, is Montenegro, at $28,000 internationally, followed by Serbia, with 26 thousand and Northern Macedonia, at 21.4 thousand.

Albania is resulting one of the best economic performance countries in the region, in terms of figures and resistant to various shocks such as earthquake, pandemic, or war, but this performance does not seem to have affected the improvement in the lives of its citizens.

Paradox, Albania among countries with the best economic performance in the region, but poverty has increased

The International Monetary Fund's data (FMN) published on staff the latest report for consulting Article IV for 2023 suggested that poverty in Albania has increased in recent years, writes Monitor. al

According to the report, the poverty rate reached 25.2% in 2022, up from 22% in 2021, with an increase of 3.2 percentage points within a year.

The IMF says the prospect of EU membership could provide an incentive to address long structural challenges, one of which is poverty.

“Poverty Scall is visible compared to the region's counterparts, and the flow of credit is low”, says IMF in report.

“Albania has also had huge influx of migration, as its labour power has been lured by higher revenues in EU countries. Corruption and shortcomings in rule of law remain past structural concerns”.

According to the IMF, unlike many countries, the poverty rate in Albania is lower in the elderly, compared to the rest of the population.

However, The IMF warns that poverty in the elderly could increase because people are now working secure for shorter periods of time.

“will likely, in the future, more people will receive partial pensions, social pensions or remain without pension due to insufficient duration of the contribution. The rate of replacement could be reduced, and this raises concerns about the threat of poverty to the elderly.

While in 2012, those who retired had contributed on average for 35 years, those who retired in 2022 contributed on average for 27 years”, the IMF says.

GDP per capita, Corent Awards (according to purchasing power equality; international dollars per capita), 2023