According to the OECD report “Economic Convergence Report for the Western Balkans 2026,” Albania has the lowest density of roads and railways in the region. It is also the only Western Balkan economy where road network density has declined over the past decade. The railway network has experienced the sharpest contraction in the region, falling by more than 28% compared with the 2014–2016 period.

With just 13 kilometres of roads per 100 square kilometres of territory, Albania ranks last among the six Western Balkan economies. Montenegro has the highest density, with 74 kilometres per 100 square kilometres. While the indicator has generally remained stable in the other countries of the region, Albania recorded a decline during the period examined by the OECD.

Albania also records the lowest level for railways: 0.9 kilometres of track per 100 square kilometres. Serbia leads the region with 4 kilometres per 100 square kilometres. The report notes that the density of Albania’s railway network has decreased by more than 28% compared with 2014–2016, the sharpest decline in the Western Balkans.

Railway problems are also reflected in freight transport. The OECD ranks Albania and Kosovo among the economies where this activity is almost negligible. As a result, the overwhelming majority of freight transport relies on roads, while the use of railways as a logistical and commercial alternative remains limited, unlike the more significant role they play in EU countries.

Infrastructure and Connectivity is the cluster in which Albania ranks last in the Western Balkans. The OECD notes that, although the region has made progress in several infrastructure areas, the gap with neighbouring EU countries remains wide, and Albania has the weakest performance among the economies in the region.

The OECD views transport as one of the main obstacles to closer integration with the EU. In the “Infrastructure and Connectivity” cluster, Albania scored 33 points, compared with the EU average of 100, ranking sixth out of the six Western Balkan economies. Road density reaches only 7.6% of the EU level, while railway density stands at 16.1%.

However, the indicators are not weak in every area. 4G coverage in Albania is practically at the EU level, while electricity costs have improved significantly. These achievements have not been sufficient to offset shortcomings in physical transport. The OECD describes transport in the country as underdeveloped, with negligible freight activity by rail and the lowest broadband speed in the region.

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The national housing program is expected to open applications during November, offering soft loans to 4,000 families and subsidized rents to 3,000 beneficiaries. Minister of Economy and Innovation Delina Ibrahimaj said that implementing the program requires the approval of a new law, which will enable applications to begin.

Ibrahimaj also announced that an online platform will be introduced, allowing citizens to view the prices of around 160 food products. The platform is intended to serve as a reference point for the market and consumers.

During a press conference where INSTAT data on economic growth were presented, the minister also highlighted the increase in foreign investment this year, with an annual rate above 50. According to her, more than half of this investment has been directed toward the real estate market.

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The livestock sector is facing difficulties due to high costs and low subsidies. Sector representatives are drawing attention again to the start of protests if institutions do not meet their demands.

Some representative livestock producers for the sector have already sent a letter to Prime Minister Edi Rama, Minister of Agriculture Anila Denaj, and Minister of Finance Petrit Malaj, requesting immediate intervention for the situation in the dairy sector.

In their letter, the livestock farmers state that the sector is in difficult conditions and the need to resolve issues has become increasingly urgent.

The livestock farmers recall the agreement reached at the meeting of April 7, 2026, with the ministers of Agriculture and Finance, when according to them it was agreed that the sector’s issues would be addressed in September. However, according to the livestock farmers, the market situation no longer allows for further delays in solutions.

“Currently, livestock farming is in difficult survival conditions and the need to resolve our demands becomes more urgent every day. We have waited for September according to the agreement reached at the meeting of April 7, 2026, but this wait cannot be extended further. This is as a result of the well-known challenges, as well as those unforeseen that the market in Albania is facing today,” they state in their letter.

The livestock farmers list 7 concrete demands for the government to meet. One of the main demands of sector representatives relates to the reduction of production costs through the removal of excise duty and taxes on fuel for the livestock sector.

This demand was also at the center of the farmers’ protests held at the beginning of April, who have demanded the return of the subsidized fuel scheme.

The removal of the fuel scheme to came at a time when fuel and agricultural input prices saw significant increases, adding pressure on farmers due to rising production costs.

Another concrete financial demand is that the portion of unspent funds from the 10% VAT compensation scheme be reallocated for subsidizing livestock farmers.

So livestock producers are asking that the funds planned for providing a 10% VAT compensation, but unused, be directed toward supporting the livestock sector.

Applications for the 10% VAT compensation began on July 1. The financial effect in the first year of implementation is estimated at around 1.5 billion lek or around 15 million euros. Livestock farmers have repeatedly stated that the compensation scheme is not expected to be effective, as the compensation amount is determined based on self-invoices issued by collectors for purchases made from farmers and livestock breeders, who in many cases issue them with values that serve them for balancing their books.

Another demand is to revise the existing support schemes and increase subsidies for livestock farmers. According to producers, the current level of support is insufficient to cover the costs and difficulties facing the sector.

Other demands include the creation of a state laboratory for milk testing, the reintroduction of tariffs on the import of powdered milk and palm oil.

Livestock farmers are asking institutions to strengthen controls for imported milk for the content of prohibited substances. Meanwhile, they also consider the labeling of dairy products a problem, in cases where imported milk is used for domestic production.

Earlier, representatives of livestock farmers raised concerns in Monitor about the difficulties that the sector is encountering and warned of renewed protests in early September if their demands are not taken into consideration by the Ministry of Agriculture and Rural Development.

Demands of livestock producers

Creation of a state laboratory for milk testing;

Reduction of fuel prices for livestock farmers by removing excise duty and taxes;

Implementation of tariffs for palm oil products, powdered milk and whey;

Review and increase of subsidies provided to livestock farmers;

Labeling of products to show the country of origin of the milk used in production;

Reallocation of the unused portion the 10% scheme into subsidies for livestock farmers;

Border controls for imported milk for aflatoxin, protein, fat and microbiological load.

“The demands listed above are vital for the current situation of the livestock sector and therefore we request a joint meeting with both ministries as soon as possible, as with each passing day the survival of this sector is becoming more difficult,” the livestock farmers emphasize in their letter./Monitor.al/

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The zero-interest housing loan scheme for public administration employees has attracted far more applicants than the approved quotas. After applications closed, 2,164 requests had been recorded for 300 new home-purchase loans, representing roughly seven times the planned number of beneficiaries.

The Ministry of Health tops the list of institutions with the most applications. Its employees submitted 782 requests, while the quota set for the ministry is 70 loans. It is followed by the Ministry of the Interior, with 448 applications for 70 quotas, and the Ministry of Education, which received 444 applications for the same number of loans.

The requests registered nationwide are around seven times higher than the number of available loans, making the competition for eligibility particularly intense.

As part of the call, 300 interest-free loans have been made available to finance the purchase of a home. The amount of financing is calculated based on the reference price, while the size of the home is determined according to the number of family members, as stated on the family certificate.

The scheme is intended for people employed in the public administration who meet the conditions set out in the legislation on social housing.

The main criteria include not owning a home or owning a home that does not meet housing standards, restrictions related to owned assets, and the requirement that the applicant has not previously benefited from other social housing programs.

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Democratic Party MP Jorida Tabaku has raised her voice about the severe economic situation in Albania, describing corruption as a “hidden tax” that is making life increasingly difficult for families and honest businesses every day.

According to her, while citizens work more and earn less, the current government is acting in favor of a narrow group close to it.

She stressed that evidence of corruption emerges from justice case files and reports from European partners. When tenders are manipulated or contracts are awarded to predetermined individuals, the consequences are immediately reflected in high prices, the lack of free competition, and shrinking budgets for healthcare, education, and pensions.

Referring to INSTAT, she noted that in December 2025 prices were 20.9 percent higher compared to December 2020, while for food and non-alcoholic beverages this increase reached 35.6 percent.

Another concern remains the decline in production and exports. Total exports fell from 430 billion lekë in 2023 to 369 billion in 2024 and then to 346 billion lekë in 2025, suffering a loss of about one fifth of their value within two years.

In 2025, exports covered only 39 percent of imports, while the trade deficit reached 541 billion lekë. The textile and footwear sector has been hit hard, with a decline of 22.4 billion lekë in exports over two years, leading to the loss of thousands of jobs, especially for women in areas with few employment alternatives.

According to the Democratic MP, another factor harming exporters is the weakening of the euro. The fall in the exchange rate from 100 to around 91 lekë has reduced the domestic currency revenues of companies by approximately 10 percent, while internal costs remain unchanged. In parallel, SPAK case files testify to the infiltration of dirty money and informality into the economy, especially in the construction sector.

She also brought attention to the case of the establishment of the company “Guna Tactical” for the production of military uniforms through the state structure KAYO. At first the state held 51 percent of the shares, but in May 2026 this share fell to 49 percent, leaving control to the private partner without transparency and without giving any chance of competition to existing Albanian factories.

In closing, Tabaku called for the publication of all KAYO contracts, an independent audit of state assets, the ensuring of free competition, as well as a concrete support package for the processing industry that includes fast VAT reimbursement and technology financing.

Full speech:

For years Albanians have been working more and more to secure less and less. Workers extend their hours, find second jobs, and sacrifice time with their families. Business owners work longer, risk their savings, take out loans, and face monthly expenses for energy, wages, taxes, and uncertainty. No Albanian family asks for luxury. They ask that honest work be enough for a decent life; that a salary cover food, rent, children’s education, and an unexpected medical expense. But facing this Albania that struggles, we have a government that increasingly seems to serve a small minority.

On one side stands the worker who counts every lekë at the end of the month. On the other side we have investigative case files, suspicious tenders, pre-assigned contracts, and companies linked to the government. These are no longer accusations that can be dismissed as opposition rhetoric. They are facts coming from justice institutions and European partners.

Corruption is not simply an envelope that goes to a hidden pocket and has nothing to do with our lives. Corruption is a hidden tax. When a tender is inflated, the difference is paid by the citizens. When a contract is awarded to a friend instead of the best company, the honest entrepreneur loses. When a market is controlled by a few hands, the price is no longer determined by competition but by the interest of the monopolist. When public funds go to those close to power, they are missing for pensions, schools, healthcare, and support for industry. That is why corruption is not something far from the family table. It sits at that table every day and takes its share from the income of every Albanian.

The numbers prove this pressure. According to INSTAT, in December 2025 the general price level was 20.9% higher than in December 2020. For food and non-alcoholic beverages, the increase was 35.6 percent. So even when annual inflation slows, prices do not come back down. They stay at the new level, while families continue to pay the difference every day. And when food accounts for about one-third of Albanian family spending, its increase is not just statistics. It is the bread, milk, meat, vegetables, and the basket that is shrinking.

At the same time, Albania is losing ground in production and exports. Total exports fell from about 430 billion lekë in 2023 to 369 billion in 2024 and then to 346 billion lekë in 2025. Within two years, the country lost nearly one-fifth of the value of its goods exports. In 2025, exports covered only 39 percent of imports, down from 50.5 percent in 2023. The trade deficit reached 541 billion lekë. This is not the model of an economy that produces more. It is the model of an economy that imports more and more and finds it increasingly difficult to compete abroad.

The clearest example is the textile and leather industry. Exports of this group fell from 126.3 billion lekë in 2023 to about 105.1 billion in 2024 and then to 103.9 billion lekë in 2025. In two years, this sector lost about 22.4 billion lekë in exports, or nearly 18 percent of their value. Even in August of this year, textiles and leather had the most negative impact on the annual change in exports. After agriculture, another sector that provides jobs, production, and exports is coming under great pressure.

This is not simply about the balance sheets of individual companies. We are talking about tens of thousands of jobs, mostly women and families in areas where employment alternatives are limited. There were around 75,000 employees at the end of 2023 and the loss of 7–8,000 jobs within the following year. Employment data showed that this contraction continued during 2025. While in the second quarter of 2026 manufacturing output grew, employment in industry still declined by 2 percent. This means that even when a little more is produced, more jobs are not necessarily being created.

One of the main blows for exporters has come from the devaluation of the euro. A company that collects one million euros received 100 million lekë when the exchange rate was 100 lekë per euro. With a rate around 91 lekë, its revenue drops to about 91 million lekë, while wages, energy, insurance, and some raw materials continue to be paid in lekë. The difference is not a number on a screen. It is the margin from which employees are paid, investments are made, and the factory is kept open.

While we speak, SPA case files have proven the penetration of dirty money into the economy. In practice, Albania continues to face money laundering, informality, large cash transactions, and markets where transparency about the source of financing remains weak. It is not enough to say “it is tourism” and close the debate. There must be control over the source of capital, beneficial owners, the construction sector, and every flow that is not justified by the formal economy.

But while existing industry demands markets and support, the government creates new structures with partners it has chosen. In May 2025, the Council of Ministers authorized KAYO to negotiate with a private company the creation of a company for the production of military uniforms. The decision provided for the use of at least 20,000 square meters of public property, a minimum private investment of 15 million euros, 400 jobs, and the supply of the Armed Forces and other security structures.

The company “Guna Tactical” was established in August 2025. Initially KAYO owned 51 percent and the private partner 49 percent. In May 2026, KAYO sold 2 percent of the shares and the ratio was reversed: the private partner took 51 percent, while the state remained with 49 percent. The question is: why? How was the private partner selected? How was the public property valued? What contracts were guaranteed to the company? Why did the state go from majority to minority? Was the Albanian textile industry, the hundreds of existing factories and companies with experience, given the opportunity to compete or become part of this project?

We are not against domestic production of uniforms. On the contrary, we want uniforms, equipment, and every product that can be produced in Albania to carry the “Made in Albania” stamp. But “Made in Albania” should not turn into “Made for the friends of the government.” Domestic production is built with competition, technology, standards, and equal opportunities; not with pre-selected companies, closed contracts, and public property placed at their disposal without full transparency.

Therefore our demand is concrete: the publication of all agreements and contracts of KAYO companies; the publication of the selection method and of the beneficial owners; an independent audit of the value of public assets and the contributions of private partners; open competition for public supplies; reporting on every payment from the budget and on every contract excluded from normal procedures for security reasons.

For the industry sector in general, a real package is required: fast VAT reimbursement, support linked to job preservation, financing for technology and energy efficiency, professional training and support for the transition from low-cost production to the full cycle, design, and Albanian brands. Assistance must be open to every company that meets the criteria, not a privilege distributed according to proximity to the government.

Albania cannot have corruption as its most successful product. It must produce food, clothing, shoes, technology, ideas, and well-paid jobs. It must protect the entrepreneur who invests savings, the worker who enters the factory every morning, and the family that seeks to live with dignity from its work.

Because a government is measured by what the country produces, not by what its friends benefit. It is measured by the number of jobs it protects, not by the number of companies it creates for its clients. It is measured by how much the burden on families is reduced, not by how many privileges are added for the few.

Albanians are working. Entrepreneurs are trying. What is not working for them is the government.

The system built by it must be brought down, and that starts by bringing down the government and the prime minister.

The SPAK files! Corruption! The economic crisis! High prices! They all have one common denominator: the Socialist Government and Prime Minister Rama.

It is time to change this government! Time to throw it into the dustbin of history and build a system for the majority! A system for Albanians!

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The Bank of Albania assesses that the financial position of households and businesses continues to be solid, yet uncertainties stemming from the international arena have deepened. Protracted wars, movements in energy markets, and dynamics in the real estate sector constitute the most significant sources of risk for the country.

In the analysis conducted for the first half of the year, reflected in the Financial Stability Report for the January-June 2026 period, the central monetary institution notes that the financial health of the private sector remains satisfactory. This is due to the fact that both income levels and debt burdens are kept within manageable parameters.

However, the document highlights that businesses are encountering difficulties in finding specialized labor, while the global geopolitical climate is generating more uncertainty. “The continuation of fighting in Ukraine and military tensions in the Middle East show tendencies to escalate further, negatively impacting quotas for crude oil, gas, and the supply chains that depend on them,” the Bank of Albania’s assessment states.

According to the Central Bank, threats coming from the “external environment” are labeled as “medium,” but their intensity has increased compared to a year ago. On the other hand, some positive indicators have helped mitigate these pressures, such as the economic expansion of our main trading partners and the maintenance of low short-term interest rates on global stock exchanges.

In the regular surveys the Bank of Albania conducts with the banking sector, the risk stemming from the international landscape is ranked as the main challenge for the Albanian economy. Immediately after it, banks list the performance in the real estate market as the second most worrying factor.

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Finance Minister Gordana Dimitrieska-Koçoska confirmed that no revision of economic growth rate or budget deficit is foreseen for the rest of the year. According to her, ongoing monitoring shows that Gross Domestic Product expansion, borrowing and fiscal indicators will stay within the limits of the revised budget forecasts.

“We do not expect major fluctuations by the year’s end and we stay close to our initial forecasts, especially given the 4.3% expansion recorded in the second quarter. Over the past two years, the government has worked with intensity and dedication on the economic front, and I believe these efforts are already materializing into concrete results. As for the budget gap, it will be maintained as we have projected, whether we proceed with a new revision or not,” she said.

The minister explained that if a new rebalancing is decided upon, adjustments will be undertaken simultaneously in both revenue and expenditure items. She reiterated that as long as circumstances remain unchanged, the deficit will not exceed the predetermined limit, same as the debt level, which is an integral part of the revision approved by Parliament. These, she said, constitute the guiding framework within which the Ministry of Finance must operate. The comments were made during an interview for Macedonian Television in New York.

She stressed that the situation is being carefully monitored and that responses are in line with international dynamics. The minister revealed that last week a working meeting was held with the Public Revenue Directorate and the Customs Directorate, where expectations and the progress of budget collections were assessed. The joint conclusion was that revenue realization is proceeding as planned, except for excise revenues, as a result of the interventions undertaken.

The minister, who is in New York to participate in the session “Driving Growth in the New Economy” within the Sustainable Development Impact Meetings 2026, organized by the World Economic Forum, underlined that the crisis management intervention package is adequate and that it is reflected in the Budget.

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The European currency continued to weaken against the lek this week, reaching another negative record. According to the official exchange rate of the Bank of Albania, the euro traded at 91.4 lekë today, the lowest value ever recorded.

Compared with the beginning of the calendar year, the euro-lek exchange rate has fallen by 5.5%, while the annual decline has reached 5.7%. This continued depreciation, which began in the first quarter of this year, has accelerated the pace of the European currency’s decline.

Market agents estimate that downward pressure may continue, driven by substantial inflows of foreign currency during the summer season and weak demand for euros.

The euro’s weakening also appears to have affected its use in asset sale and purchase transactions in the domestic market, including real estate. At the same time, euro deposits are growing at a slower pace, signaling an increasing public tendency to keep savings in the domestic currency.

These developments are likely to increase downward pressure on the euro exchange rate, a trend that has generally been evident for more than a decade. It is linked to the structural improvement in the external position of the Albanian economy.

This long-term improvement has been supported by rising tourism revenues, the expansion of service exports and increased foreign direct investment, particularly in the real estate sector. Informal foreign-currency inflows are also perceived to have played a partial role in this trend.

Data from the Bank of Albania show that the balance of payments also improved significantly during the first half of this year. In the first half of 2026, the current account deficit fell to 361 million euros, or 40.6% less than in the same period last year.

This is the lowest current account deficit recorded for a six-month period since 2018. Service exports and remittances made the largest contribution to its reduction. The balance of trade in services was positive at around 1.79 billion euros, increasing by 12.9% compared with the first half of last year.

Tourism accounted for more than half of the services sector’s contribution. During the first six months of the year, it generated net revenues of 957 million euros for the economy, 20% more than in the same period last year.

The significant increase in foreign direct investment also contributed to the improvement in the overall balance. According to the Bank of Albania, in the second quarter of 2026, foreign direct investment reached 741 million euros, an increase of 86% compared with the corresponding quarter a year earlier.

This increase was driven significantly by flows linked to an important development project in the real estate sector. In total, during the first six months, foreign direct investment reached 1.144 billion euros, increasing by 50% compared with the same period last year.

Another factor affecting the market is the high fiscal surplus, which is reducing the supply of lekë.

In the first eight months of 2026, the budget recorded a surplus of 61.6 billion lekë, 52% higher than in the same period a year earlier.

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Kosovo’s Prime Minister Albin Kurti held a meeting in New York with Kristalina Georgieva, the managing director of the International Monetary Fund (IMF).

The discussion focused on relations between Kosovo and the IMF, the government’s economic reforms, and new challenges affecting the global economy.

The meeting took place during Kurti’s visit to New York as part of the High-Level Week of the 81st Session of the United Nations General Assembly.

According to the statement, the parties reviewed their cooperation to date and discussed ways to further expand and diversify the partnership between Kosovo and the IMF.

Kurti said the focus of the government’s reform agenda was creating higher-quality jobs, with particular attention to young people and women.

“The reform agenda aims to create better jobs, especially for young people and women, through increased productivity, investment and exports, as well as greater participation in the labor force,” Kurti said.

As part of these policies, the prime minister mentioned the expansion of the SuperPuna for Women program, alongside the continuation and improvement of the dual education system.

The meeting also addressed the performance of Kosovo’s economy. Kurti emphasized that economic growth reached 5.4 percent in the first quarter and 4.1 percent in the second quarter of this year.

The discussion also included developments in the global economy, including rising oil prices and the energy crisis. Both parties reviewed the mechanisms and measures needed to address these difficulties.

Kurti thanked Georgieva for the IMF’s continued support and cooperation with Kosovo, while expressing his readiness to further deepen and diversify this relationship during the new mandate.

“Our aim is to further deepen and diversify our cooperation with the International Monetary Fund,” Kurti said.

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Welcoming a child in Albania represents a very heavy financial commitment, both in absolute terms and in proportion to family income. A study conducted by Remitly shows that essential products for the first 12 months of life amount to around 5,532 euros, a figure that matches nearly 66% of the average annual earnings in the country.

With this percentage, Albania ranks as the second most expensive economy on the continent when measuring the ratio of costs to the average wage. The only one that exceeds it is Moldova, where parents have to spend the equivalent of 88.8% of their annual income. For the 36 states included in the analysis, this average indicator stands at just 20.9%.

Even in nominal terms, Albania ranks high on the list of high-cost countries. Based on a bill of 5,532 euros for basic baby care items, it occupies ninth place among 38 European nations surveyed. Ahead of it are states like Spain, the Netherlands, Finland, Sweden, Switzerland, Luxembourg, Italy, and Lithuania.

The key to the difference lies in purchasing power. All the countries that precede Albania in the nominal ranking enjoy substantially higher wages and incomes. Consequently, the same amount spent on a newborn occupies a much more modest part of the family budget in those economies. For illustration, in Switzerland, basic items absorb only 8% of the average annual wage, in the Netherlands 9.4%, while in Albania this figure goes to 66%.

The study, which was processed using prices from July 2026, calculated the annual expenses for a range of necessary products during the first year of life. It includes 14 items divided into six groups: diaper changing (diapers, wet wipes, protective cream); feeding bottles with their caps; formula milk; sleep (crib, portable basket, mattress, fitted sheet, blanket); transport (car seat, stroller); and clothing (bodysuits, sets or pants, socks).

In 38 European countries, the estimated cost for these basic products in the first year fluctuates significantly. It starts from 2,813 euros in Great Britain and peaks at 6,294 euros in Spain, while the continent’s average stands at 4,727 euros. Other countries where the annual bill exceeds 6,000 euros are the Netherlands at 6,140 euros, Finland at 6,066 euros, Sweden at 6,025 euros, and Switzerland at 6,018 euros.

In the group of countries with costs between 5,000 and 6,000 euros are Luxembourg (5,665 euros), Italy (5,609 euros), Lithuania (5,563 euros), Albania (5,532 euros), Serbia (5,509 euros), Montenegro (5,500 euros), Portugal (5,337 euros), Slovakia (5,221 euros), Norway (5,079 euros), and Iceland (5,004 euros). Among the largest economies, Spain leads in cost, while Great Britain has the lowest bill. Germany (4,701 euros) and France (4,393 euros) stand near the European average.

On the other end of the spectrum, parents in the Czech Republic (3,211 euros), Romania (3,385 euros), Latvia (3,392 euros), Croatia (3,661 euros), Bulgaria (3,804 euros), and Bosnia and Herzegovina (3,844 euros) face some of the lowest nominal expenses. In these six countries, the total cost remains below the 4,000-euro threshold, while Turkey (4,023 euros), Belgium (4,084 euros), Malta (4,118 euros), and Greece (4,158 euros) just exceed this level.

The way expenses are distributed among the six categories shows great disparities across Europe. On average, clothing takes 30.3% of the total, formula milk 25.7%, and diapers 24.5%. These three items together account for 81% of all expenses for the first year. In monetary terms, this means 1,465 euros for clothing, 1,187 euros for formula milk, and 1,152 euros for diapers, bringing the combined amount to 3,804 euros.

The cost structure varies radically from one country to another. For example, clothing represents only 16% of the total in Denmark, but accounts for 52.5% in Sweden. Their weight is above 45% also in the Netherlands, Finland, and Ireland. Formula milk, on the other hand, amounts to 10.8% of expenses in Sweden and rises to 41.3% in Latvia, with equally high percentages in Turkey, Denmark, and Hungary. As for diapers, they make up 12.4% of the cost in Turkey, but more than 36% in Switzerland and Belgium.

To measure the real financial burden, Remitly’s analysis set the cost of products against the average wage in each state, using International Labour Organization data on monthly employee incomes, adjusted for inflation. Affordability also depends on factors such as the number of working parents, the tax system, and family benefits, elements that can create considerable differences between countries.

From this perspective, for the 36 countries compared, basic baby products swallow on average 20.9% of the annual wage. This ratio ranges from just 5.4% in Belgium to 88.8% in Moldova. After Albania, which scores 66%, come Turkey at 45.1%, Montenegro at 45%, Serbia at 41.4%, Bosnia and Herzegovina at 36.1%, Portugal at 35.7%, and Hungary at 34.7%. In all these countries, basic baby items consume at least one third of the average annual income.

In complete contrast, there are states where these expenses are almost negligible in relation to the wage. They account for less than 10% in Luxembourg (6%), Denmark (6.7%), Great Britain (7.5%), Norway (7.6%), Ireland (8%), Switzerland (8%), Germany (8.1%), Austria (8.2%), France (8.5%), Malta (8.9%), and the Netherlands (9.4%).

It is worth noting that this study does not include fees for nurseries and other forms of childcare, which can add a significant financial weight on European parents. As a reference, in 2023, the gross childcare costs for two children in Switzerland reached 64,211 euros, while the Netherlands recorded the highest level within the European Union at 39,229 euros, according to OECD data. In Germany, this figure was only 552 euros. When talking about net expenses, a Swiss family with one income source pays 10,200 euros, while a couple with two earners pays 27,551 euros. However, state subsidies can drastically reduce these payments in some countries, bringing net expenses below the 5,000-euro level.

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