Income inequality in Albania remains above the European Union average; furthermore, the indicator worsened slightly in 2025, contrasting with the general European trend.

According to Eurostat data, the Gini coefficient - which measures income inequality - reached 30.4 in Albania in 2025, up from 29.8 the previous year. This figure is 1.2 points higher than the European Union average of 29.2.

The data indicate that while income disparities have widened in Albania, European Union countries have seen a slight improvement. The Gini coefficient for the EU fell from 29.4 in 2024 to 29.2 in 2025.

Recent data from INSTAT also confirm rising inequality within the country. According to the Survey on Income and Living Conditions, published in October, the Gini coefficient rose to 30.37% - up from 29.83% - even though the average disposable income per capita increased by 10.5%.

Within Europe, there are significant disparities between countries. According to Eurostat, Bulgaria had the highest level of income inequality in the European Union, with a Gini coefficient of 37.7, followed by Latvia (35.6) and Lithuania (35.5).

At the other end of the spectrum, Slovakia emerged as the country with the most equal income distribution, with a coefficient of 23.0, followed by Belgium (23.4), the Czech Republic (24.0), Slovenia (24.6), and Poland (24.9).

In the Western Balkans region, the latest available Eurostat data indicate a relatively similar level of inequality, although the reference years vary. Serbia had a Gini coefficient of 31.9 in 2024, Montenegro 31.5 in 2022, and North Macedonia 30.3 in 2023.

The Gini coefficient measures the degree of inequality in the distribution of the population's disposable income, on a scale from 0 to 100. A value of zero indicates perfect equality, where all individuals have the same income, while a value of 100 represents maximum inequality, where all income is concentrated in the hands of a single individual.
Income inequality reveals how unevenly a nation’s economic prosperity is shared among its population. High inequality shows that a small elite - such as the top 1% or 10% - controls a disproportionate share of total wealth, while working-class and low-income families experience stagnant wages. This gap often points to systemic barriers that limit social mobility, making it difficult for individuals to climb the economic ladder regardless of effort. Beyond economics, wide income gaps signal underlying issues with a country's fiscal policies, highlighting weak tax systems or inadequate social safety nets. It also reflects broader societal strains, as extreme disparities are proven to weaken social trust, polarize democratic institutions, and lower public health outcomes for vulnerable groups.