Family expenses and the income NEEDED in 2025

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The analysis “Household Expenditures and the INCOME Needed, 2025” aims to provide a detailed overview of the ability to meet household expenses in Albania for the year 2024, with a perspective toward 2025, by taking into account the socio-economic factors that influence the structure of expenditures and the need for sufficient income to cover these expenses.

This analysis is an important tool for understanding the challenges faced by families and the impact that economic and social policies have on improving living conditions.

Main objectives of the analysis

  1. Identification of key household expenditures.

The analysis aims to categorize and understand the main expenses of Albanian families, including food, housing, healthcare, education, energy, and transport. Determining the share of these expenses in household budgets will help better understand the factors influencing spending structures.

  1. Calculation of the income required to meet expenses.

A key aspect of the analysis is determining the level of income a family needs to cover these expenses in 2024. This includes a comparison with the level of average wages and possible income for families in urban and rural areas.

  1. Impact of inflation and economic changes.

The analysis will also examine the impact of inflation and other economic changes, which directly affect the prices of goods and services. Inflation, rising energy prices, and economic uncertainty are factors that affect the ability of families to cope with daily expenses.

  1. Analysis of differences between social groups and geographic areas.

Income and spending vary significantly among different population groups and between urban and rural areas. This aspect of the analysis will help identify the specific needs and challenges faced by particular groups, such as families with children, pensioners, or those living in remote areas.

  1. Proposals for public policies and support for families.

From this analytical process, the analysis will provide recommendations for public policies that could help improve families’ living conditions. This may include efforts to reduce taxes for certain population groups, greater support for the health and education sectors, as well as policies for increasing wages and employment opportunities.

An important part of the analysis

To achieve these objectives, the analysis will rely on the latest data on household income levels, their average expenses, and the increase in the cost of living. It will also include a review of current and potential policies that may influence the reduction of social inequality and the improvement of economic opportunities for different groups.

In conclusion, this analysis will help build a deep understanding of how household expenditures are affected by economic changes and will provide a guide to highlight the need for sufficient income to cover these expenses in 2024, and especially in 2025.

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Description

As Albania enters 2025, the issue of household income adequacy has gained renewed importance amidst persistent inflation, uneven wage growth, and regional disparities in living standards.

The ability of Albanian families to meet essential consumption needs, ranging from food and housing to healthcare and education—is increasingly constrained by rising prices and a stagnation in real incomes for a large portion of the population.

According to the 2023 Household Budget Survey, the average monthly expenditure per family reached 91,675 lekë, marking a 3.7% annual increase.

Food and non-alcoholic beverages alone absorbed 40% of household budgets, while housing, utilities, and transportation combined accounted for nearly 20%.

These figures highlight the heavy concentration of spending on necessities, leaving limited room for discretionary expenses such as education, health services, or social participation, especially among low-income households.

This publication provides a detailed examination of the composition of household expenditures and contrasts them with the income levels most prevalent across different social categories—such as families living on minimum wage incomes, those relying on public transfers, or those employed in low-paying sectors.

By estimating the minimum income thresholds required to cover essential living costs, the analysis underscores the growing pressure on household resilience and the risk of deepening economic vulnerability.

The study also considers the broader macroeconomic context, particularly the effects of inflation, changes in energy and food prices, and disparities between urban and rural areas to assess the sustainability of current income-expenditure dynamics.

Through this lens, the publication aims to inform public debate and policy planning on critical areas such as wage adequacy, targeted fiscal support, and social welfare interventions needed to improve household welfare and reduce inequality in Albania in 2025.

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