Nearly 40% of the Albanian population is at risk of poverty or social exclusion, despite a slight improvement in living standard indicators during 2025.

Poverty indicators have remained stubborn, even though the country's economy is growing at a rate above the decade's average, and the local currency has seen the strongest appreciation against the euro among all European currencies.

On the other hand, the average monthly disposable income per capita in the country reached Lek 56,487 (Euro 620) in 2025, marking an increase of 10.5% compared to the previous year, while indicators for the risk of poverty and material and social deprivation showed improvement.

According to the 2025 Survey on Income and Living Conditions, published by the Institute of Statistics (INSTAT), the average monthly income rose from Lek 51,122 in 2024, reflecting a positive trend in this standard-of-living indicator.

INSTAT reports that the risk-of-poverty rate fell to 19%, down from 19.2% in 2024. Meanwhile, the rate of severe material and social deprivation decreased to 31.2%, from 32.8% a year earlier.

Improvement was also recorded in the indicator for the population at risk of poverty or social exclusion, which fell to 39.4% from 40.5% in 2024 - a decline of 1.1 percentage points.

Social transfers - particularly old-age and survivor pensions - continue to play a significant role in supporting household well-being. According to INSTAT, the inclusion of pensions in household income helped reduce the at-risk-of-poverty rate from 35.9% to 21.9%.

Meanwhile, the at-risk-of-poverty threshold for an individual rose to Lek 349,565 per year, up from Lek 324,336 the previous year.

Regarding income distribution, the Gini coefficient was estimated at 30.37%, compared to 29.83% a year earlier, indicating that income inequality remains a challenge for further improving well-being. The INSTAT survey provides data on household income, relative poverty, and social exclusion, serving as a basis for assessing living standards and formulating policies to support families and reduce poverty.