Income per capita in Albania and exchange rate, 2002-2022

In a statistical calculation of the trend of the per capita income ratio in the last 20 years (2002-2022) it is seen that there is an increase of 3.73 times more. This increase is an indicator of economic development, but also an indicator of population decreases, which directly affects the result of the report[1].

If we start the examination for the period in the first decade, the increase in income per capita (expressed in Lek) is 2.29 times. While in the second decade the increase in income per capita is 1.62 times

In the first decade, the growth of per capita income (expressed in US dollars) is 2.98 times. While in the second decade the increase in income per capita was 1.59 times.

Meanwhile, in the first decade the growth of income per capita (expressed in Euros) is 2.255 times. While in the second decade the increase in income per capita is 1.98 times.

As can be seen in the graph, the trends of income per breath according to the ratio expressed in the US. Dollars are above the trend of income per capita according to the report expressed in Euros.

Meanwhile, if we look at the ratio of income per capita in Lek, there is obviously not a match between the two indicators.

This is not a problem in the expression of the report, if at each moment of reporting and presentation of the indicators the same values ​​are kept based on the same currency.

But, if indicators expressed in different currencies are used for different reporting periods, then the report obviously does not reflect reality, since everything that results depend on the exchange rate. Just like the exchange rate in everyday life when we convert the lek with one of the currencies it happens that at one moment we have a greater value and at another time we have a smaller value, it also happens now when statistics are calculated and reported for the public.

Thus, income per head (inhabitant) in Albania, 2002-2022

converted into Euros and
converted to US. Dollars

they differ from each other if we look at them in the period 2002-2022.

While it is the same ratio (income of GDP/Inhabitant), there is no match between the trends when converted into different currencies, since it is the exchange rate, that when currencies are converted at various times and with changing rates, they show values different, which are not real.

This can be seen from the Table “Gross Domestic Product (GDP) per Inhabitant in Albania (Lek/USD/Euro), 2002 -2022“, it gives detailed values ​​according to report for each year, in the period 2002 – 2022.

It happens that when the indicators are expressed in trends when one currency is weaker than the other, then the per capita income indicator also creates the unrealistic perception of a substantial increase and the opposite.

In the reality of measuring this indicator, the real value is the one resulting from the ratio in Lek. Indicators with other values ​​are only conversions and do not really show the real increase in per capita income.

[1] PBB për frymë është shuma e vlerës bruto të shtuar nga të gjithë prodhuesit rezidentë në ekonomi plus çdo taksë produkti (më pak subvencionet) që nuk përfshihen në vlerësimin e prodhimit, pjesëtuar me popullsinë e mesit të vitit.