Rising costs and remittances: Strain on Albanian households

June 11, 2024 - The aging population and rising living costs in Albania have spurred a significant increase in the needs of older citizens. Consequently, relatives living and working abroad are sending more money to support their families back home. Remittances surged to 241 million euros in the first three months of the year, marking a substantial rise from the previous year.

Elderly people waiting for these remittances report that the high cost of living has compelled them to seek more financial assistance from their children. The regions of Kukës and Dibra, known as the poorest areas in the country, heavily depend on these remittances. Additionally, 26% of Albanian households receiving money from abroad find themselves with less disposable income compared to others.

Despite the rise in remittances, the devaluation of the euro has led to Albanian households having less cash to spend, experiencing an estimated 15% decrease compared to the previous year.