Household consumption in 2024 between stability and subtle change

A Year of “careful balance” [1]

Data from the Household Economic Units Budget Survey (ABNJEF 2024) portray a picture of the Albanian household economy navigating between improved purchasing power and persistent structural constraints.
The 1.5% increase in consumption spending, although modest compared to the 11.7% rise in wages, signals a real improvement in consumption capacity, moderated by consumers’ caution toward prices and economic uncertainty.

This is a year of nominal stability, but not necessarily one of structural transformation in living standards. Spending is growing slowly, yet qualitative trends in consumption are beginning to emerge.

The weight of food, a measure of real purchasing power

In the Albanian economy, food and non-alcoholic beverages continue to hold the largest share of household budgets (39.6%).
The fact that this share has not declined, despite wage growth, indicates that additional income has not yet shifted consumption toward more advanced goods and services.
From a public perspective, this reflects a stagnation in structural well-being: families are coping better with prices but have not yet reached a higher standard of living.

Urban consumption and changing habits

Three categories, furniture and household maintenance (+5.7%), transport (+5.2%), and restaurants and hotels (+7.6%) clearly signal an urbanization of consumption.
This development suggests that cities, particularly Tirana, are approaching a more European consumption model, where quality of life, services, and mobility take on greater importance.

However, this trend remains concentrated in urban strata and is not yet evenly reflected nationwide.
In regions such as Kukës and Dibër, average monthly expenditures are around 30% lower than in Tirana, a gap that shows no signs of narrowing.

Basic spending and the elasticity of consumption

While education (3.4%), health (4.3%), and communication (3.7%) remain nearly unchanged, it is evident that consumption in these areas is still rigid — constrained by families’ limited ability to invest in human and technological capital.
This represents a subtle warning for long-term development, since investment in education and health is the foundation for sustainable improvements in well-being.

Purchasing power and the social dimension

The increase in wages and the indexation of pensions by 4.1% in 2023 and 2024, and by 2.5% in October 2024 have provided a temporary relief effect.
However, the relationship between income growth and consumption growth indicates that families are choosing to save more or pay off obligations, rather than spending at the same pace as income growth.
This behavior may be interpreted as social prudence and a lack of confidence in the sustainability of economic growth.

Family size and its impact on spending

The reduction in average household size from 3.7 to 3.1 persons is a factor reshaping consumption patterns.
Smaller households tend to have higher fixed costs per person, but also greater autonomy in consumption decisions.
This demographic shift is crucial for public policy, as it signals a gradual transition from the traditional family model toward a more individualistic urban economy.

Public perspective, what this picture reveals

From a public standpoint, ABNJEF 2024 data convey several key messages:

• Consumption stability is positive, yet it conceals a lack of real transformation in living standards.
• Wage growth is translating into better quality of consumption, not necessarily more consumption.
• Regional disparities remain deep and call for balanced territorial policies.
• Consumer caution has increased, a sign of economic awareness, but also of uncertainty about the future.

A society learning to manage its well-being In summary, 2024 does not mark a major rise in consumption, but rather a change in its philosophy.
Albanians are moving from a survival-based consumption phase toward a more careful, quality-oriented consumption model.
This represents an important transition phase, not spectacular in figures, but significant in how household economics are adapting to a new reality of stability with limited growth.

[1] Taken from the study at ALTAX (in Albanian), https://altax.al/product/shpenzimet-familjare-dhe-fuqia-blerese-ne-shqiperi-2023-vs-2024/