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Economy

The Covid crisis reduced the per capita income of Albanians by almost 300 euros in 2020

  • 1/19/2021 2:40 PM
The Covid crisis reduced the per capita income of Albanians by almost 300 euros in 2020

On average, an Albanian citizen has lost almost 300 euros of annual income from the pandemic crisis in 2020, according to data from the Ministry of Finance. In the new Macroeconomic Framework 2022 -2024 published in the Official Gazette, the government predicts that per capita income will shrink in 2020 with 36 thousand ALL or about 300 euros.

The average per capita income in 2020 is expected to reach 552 thousand ALL from 588 thousand ALL last year. The government predicts that per capita income will be fully recovered this year, reaching 592 thousand ALL. This value fully recovers the loss of 2020 and is even higher than that of 2019. But the business sector and economics experts are not optimistic about such a speedy recovery.

Recovery of losses caused by the pandemic is expected to occur over the next two years. The government predicts that by 2024 per capita income has reached 727.6 thousand ALL with an increase of 32% with the expectations of this year. Per capita income was hit due to restrictions on movement and suspension of activity in the services sector and especially in the tourism sector. According to official data, in the second quarter of 2020 about 47 thousand people in the private sector lost their jobs, despite the fact that most returned to work in the third quarter. The Covid-19 crisis has affected wage cuts, which has been evident in the private sector while wages in the state have continued to rise.

According to INSTAT, the average gross monthly salary for a salaried employee, during the third quarter of 2020, is 52,815 ALL, decreasing by 2.5% compared to the second quarter of 2020, while compared to the same quarter of the previous year is 1.8% higher. The decline in wages in the third quarter in the second report was observed only in the private sector. According to INSTAT, the average monthly salary for a salaried employee in the private sector was 47,486 ALL, decreasing by 3.6% compared to the second quarter.

/Klara Ruci/