Poverty indicators are improving, but still around half a million Albanians are "at risk"

2024-03-02 09:39:31Biznes SHKRUAR NGA REDAKSIA VOX

Poverty indicators are improving, but still around half a million Albanians are

According to data from the "Survey of Income and Living Standards" published by INSTAT for 2022, about 577 thousand Albanians, or more than half a million, live below the poverty line. Specifically, this indicator in 2022 is 20.6%, suffering a drop of 1.4 percentage points, compared to 2021, and this has come as a result of the drop in the main indicators that determine the risk of being poor. We emphasize that this indicator takes into consideration disposable family income, the number of family members and the distribution of income between population groups.

If we talk about the deepened degree of material deprivation, which shows the percentage of individuals living in families who cannot afford at least 4 of the 9 categories of material deprivation, the figures show that for the year 2022 this indicator is estimated at 37% against 39% that was estimated in 2021. The limit of the risk of being poor for a person in 2022 was estimated at 225,931 ALL, compared to 191,791 ALL in 2021.

'Scan Intel' has analyzed data on the risk of being poor also by age group. From the analysis of the figures, we notice that for all age groups, the risk of being poor is decreasing from year to year. For the 18-64 age group, the risk of being poor has decreased by 1.6 pp, while the 65 and older age group is more exposed to poverty, as this indicator decreased by only 0.9 pp in 2022. Meanwhile, if we intensify the analysis among the employed, the data show that the risk of being poor for employed persons aged 18 and over has decreased by 2.1 percentage points in 2022, compared to 2021. Among unemployed individuals and pensioners this indicator has increased by 0.4pp and 0.2pp, respectively, compared to 2021.

But how does Albania appear among the countries of the region and the EU? The figures show that the value of relative poverty in Albania is above the EU average. In our country, the poverty indicator is 20.6%, while in the EU it is 16.5%. As for European countries, the highest value of relative poverty is recorded in Bulgaria with 22.9%, Estonia with 22.8% and Latvia with 22.5%. In contrast, the lowest poverty values ​​are recorded in the Czech Republic with 10.2% as well as Slovenia and Hungary with 12.1% respectively.


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