The average disposable income of Albanians in 2020 was 4,385 PPS (a unit that measures income according to the purchasing power standard) per inhabitant, the lowest in Europe, according to a recent Eurostat report. 

How income and wealth are distributed throughout society determines the degree to which individuals have equal access to the goods and services produced within a national economy. A very important measure of income distribution, according to Eurostat, is the median equalized disposable income (disposable income) expressed in the purchasing power standard (PPS) per inhabitant. 

The average disposable income of Albanians is much lower than the European average, constituting only 24.5% of the EU average. According to Eurostat, in 2020, average disposable income was on average PPS 17,871 per inhabitant in the EU. 

After Albania, the lowest average disposable incomes are in North Macedonia (5,988 PPS) and Serbia (6,602 PPS). Data are missing for Kosovo and Bosnia and Herzegovina. 

Even other Eurostat publications, for income per capita and consumption, Albania has the weakest indicators of the standard of living. With 32% of the European average, Albania remains last in Europe for per capita income for 2021, according to the latest data published by Eurostat (the data does not include Kosovo). 

Bosnia and Herzegovina has a per capita income of 33% of the EU average, while North Macedonia has the indicator 10 percentage points higher than Albania (42), Serbia 44 and the record in the region is held by Montenegro, with 47 %. 

In the other indicator, that of individual consumption per capita, which measures the purchasing power of the citizens of a country and their material well-being, Albania is again last, with 39% of the European average. Bosnia has this indicator 41%, North Macedonia 49, Serbia 52 and Montenegro 60%. 

According to Eurostat, in 2020, average disposable income in Europe was on average PPS 17,871 per inhabitant in the EU. 

This indicator varied considerably across EU member states and ranged from 28,675 PPS in Luxembourg to 7,724 PPS in Romania. 

The highest levels of average disposable income were recorded in the western and Nordic EU member states, such as Luxembourg (PPS 28,675), Germany (PPS 24,212), Austria (PPS 23,334) and Belgium (PPS 22,294 ). On the other hand, average disposable income was lower in most southern and eastern Member States, such as Romania (PPS 7,724), Bulgaria (PPS 8,647), Hungary (PPS 9,699) and Slovakia (PPS 10,076).

(Source: Monitor)