Living conditions in European Neighbourhood South countries

Data extracted in April 2025.

Planned article update: June 2026.

Highlights

In 2023, all ENP-South countries with data available exhibited greater disparities in disposable income compared to the EU. Morocco recorded the highest inequality, with a Gini coefficient of 46.4, significantly above the EU average of 29.6.

Most ENP-South countries with data available, along with the EU, experienced notable consumer price increases in 2022 and 2023, except for Jordan and Israel, where inflation remained moderate. In Lebanon, price levels rose sharply due to ongoing economic and financial crises since 2020.

Household electricity and gas prices were generally lower in ENP-South countries with data available compared to the EU, in 2023. An exception was the gas price in Palestine, which exceeded the EU average. Gas production countries like Algeria and Libya recorded the lowest gas costs.

This article is part of an online publication. It presents information on living conditions in 9 European Neighbourhood Policy-South (ENP-South) countries, namely, Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine ^[1] and Tunisia, comparing them with developments in the European Union (EU). This article does not contain any data on Syria, as cooperation with Syria was suspended since 2011 until recently, and no data are currently collected. Lebanon data does not account for Palestinian refugee camps in Lebanon.

Given that data collection for ENP-South countries is non-obligatory and subject to various changes related to the political and geographical context, data availability may often show inconsistency over the entire period presented or for recent years.

This article presents, among others: statistics on the Gini coefficient measuring inequality of disposable income, the Consumer price index, electricity prices and gas prices highlighting prices trends and disparity but also non-economic indicators such as the share of population connected to public water supply, The last part of the article presents data on long-term unemployment and the share of population below the national poverty line as a measure of the risk of social and economic exclusion.

Gini coefficient of equivalised disposable income, 2023

Gini coefficient of equivalised disposable income

The Gini coefficient measures inequality in how income is distributed within a country. It measures how different the actual income distribution is from a distribution where every household has the same income. Higher values of the coefficient indicate greater income inequality: if the Gini coefficient is 0, everyone has the same income; a coefficient of 100 means that one household has all the income. The Gini coefficient is one of the most common indicators for measuring economic inequality. In Figure 1, the Gini coefficients for equalised disposable income in the ENP-South countries are presented and compared with the coefficient for the EU.

Figure 1: Gini coefficient of equivalised disposable income, 2023
Source: Eurostat (ilc_di12) and (enps_ilc_di12)

The disposable income of a household is its total net income, including income from work and investments, as well as social benefits, after any taxes are deducted and social contributions paid. To compare households of different sizes and compositions, the households are 'equivalised' by counting the first adult as 1.0, all other adult persons (aged 14 and over) as 0.5, and children (aged under 14) as 0.3.

The EU reference for 2023 was 29.6. This relatively low level of income inequality suggests a moderate redistribution and the existence of social welfare systems.

Among the ENP-South countries for which data is available, the income inequality measured by the Gini coefficient was lowest in Egypt, at 30.0. As the most recent data available concerned 2020 the inequality may have worsened since that year, due to inflation and economic challenges.

The Gini coefficients in other ENP-South countries for which data is available recorded higher levels, indicating more pronounced inequalities in disposable income. While the coefficient measured for Tunisia was 35.3 (in 2021), Israel accounted for 35.8 (in 2022). Palestine recorded a Gini coefficient of 34.4 in 2023 which represents the West Bank only as no data are available nationally from the fourth quarter of 2023 on due to open ongoing conflict with Israel. The inequalities in disposable income were particularly high in Morocco, with a Gini coefficient of 46.4 as of 2019 (estimated data).

Data are not available for Algeria, Jordan, Lebanon and Libya.

Consumer prices

A consumer price index (CPI), in the EU countries the Harmonised index of consumer prices (HICP), is an indicator that measures changes in the price level of a basket of goods and services purchased by households. The index is used to assess inflation in an economy.

Figure 2: Consumer prices, 2013-2023
Source: Eurostat (prc_hicp_aind) and (enps_cpi).

Considering the large and volatile price movements, Lebanon’s inflation data is presented on a distinct chart with a different scale, underscoring its statistical outlier status within the region and highlighting the severity of its ongoing economic crisis. Between 2013 and 2019, Lebanon experienced relatively low and stable inflation rates, with consumer prices showing moderate fluctuations, including a year-on-year peak of 6.1% in 2018 and instances of deflation in 2016. However, in 2020, there was a notable rise in inflation, with prices increasing by 84.9% compared to the previous year, marking the beginning of an exponential rise. By 2023, consumer prices had escalated to over 40 times their 2019 levels and nearly 50 times their 2013 values. This unprecedented inflationary spiral reflects the compound effects of a multifaceted crisis, including a banking sector collapse, a sovereign debt default by the Lebanese state, the COVID-19 pandemic, the Beirut port explosion, the onset of the Russian war of aggression against Ukraine, and increased tensions on the border with Israel since October 2023.

Egypt faced persistently high inflation throughout the 2013-2023 period, marked by 2 major peaks. The first occurred in 2017, with year-on-year inflation reaching 29.5%, following subsidy reforms and a sharp currency devaluation. A second, more pronounced surge was recorded in 2023, when inflation climbed to 33.9%, driven by rising global commodity prices, domestic supply chain disruptions, and continued currency pressures. The Egyptian pound depreciated by approximately 23% against the euro in 2023 alone, amplifying imported inflation. Over the decade, cumulative price increases reached 276.8%, reflecting sustained upward pressure on consumer prices.

During 2013-2023, both Tunisia and Algeria experienced sustained inflationary growth, with consumer prices rising by approximately 80% and 70% respectively, reflecting a steady upward trend over the decade.

In contrast to Lebanon and Egypt, other ENP-South countries - namely Jordan, Morocco, Palestine, and Israel - experienced comparatively moderate inflation between 2013 and 2023. Over much of the period, price increases remained below EU levels, with some years even marked by deflation. However, a notable shift occurred in 2022 and 2023, when inflation accelerated across the region. While recent inflation data for Morocco in 2023 is unavailable, earlier figures suggest that it followed a similar trajectory of rising prices in the wake of global economic disruptions. These trends highlight a broader regional pattern of inflationary pressure emerging later than in Egypt or Lebanon but gaining momentum in the wake of international crises and shifting economic conditions.

No comparable data on the consumer price index are available for Libya.

Between 2013 and 2023, EU maintained low and stable consumer prices, with the harmonised index of consumer prices rising gradually from 99.5 in 2013 to 126.4 in 2023. Over the whole period, prices increased by 27.0%, with most of this increase coming in 2022 (9.2%) and 2023 (6.4%). The sharp inflation spike in 2022 coincided with the post-pandemic economic shifts and Russia’s war of aggression against Ukraine.

Compared to the EU, Jordan, Morocco, Palestine, and Israel followed broadly similar inflation trends, while Algeria and Tunisia recorded faster price growth. In contrast, Egypt and Lebanon faced much higher inflation, with the latter’s prices nearly exploding from 2020 amid post-pandemic economic shifts.

Electricity prices for households

Electricity prices vary depending on how much energy households are consuming. For the EU and EU countries, Eurostat compiles and publishes electricity prices for households according to 5 different levels of annual electricity consumption. The electricity prices presented for households are based on prices in the middle consumption category, with annual electricity consumption between 2 500 and 4999 kilowatt-hours (kWh) per year. The electricity prices in € per KWh are consumer retail prices and include all levies and taxes, also VAT.

Figure 3: Electricity prices for households, 2013-2023
Source: Eurostat (nrg_pc_204_c) and (enps_nrg_prchh)

Between 2013 and 2023, electricity prices for households in ENP-South countries remained significantly below the EU average, with notable variation across the region. Israel recorded the highest prices among them, rising moderately from €0.110 in 2013 to €0.134 in 2020. Tunisia's prices were relatively stable, increasing slightly from €0.072 in 2017 to €0.077 in 2023. While Algeria maintained low and steady rates around €0.028 from 2020 onward, Libya had the lowest prices overall, dropping sharply to just €0.004 in 2021.

During 2013-2018, household electricity prices in Israel ranged from a low of €0.107 per kWh in 2016 to a high of €0.112 in 2015. In 2019, prices rose sharply by 22.2% to €0.135 per kWh and remained stable at €0.134 in 2020. Data for 2021 to 2023 are not available.

In Tunisia, prices fluctuated between 2017 and 2023 (no earlier data available), reaching a low of €0.066 in 2018 after a 9.0% decrease from 2017, and peaking at €0.077 in both 2022 and 2023, following an 11.8 % increase between 2021 and 2022.

In Algeria, household electricity prices were stable between 2018 and 2020 at €0.033–€0.034 per kWh, before dropping by 15.2% to €0.028 in 2021, where they remained through 2023 (no data before 2018).

In Libya, prices varied only slightly between €0.012 and €0.013 per kWh from 2013 to 2020. In 2021, the price dropped sharply by 70.4% to €0.004 per kWh, largely due to the devaluation of the Libyan dinar. When measured in LYD per kWh, the price decline was more moderate at 7.2%. Data for 2022 and 2023 are not available.

Data for Egypt, Jordan, Palestine, Lebanon and Morocco are not available.

The electricity price for households with medium annual consumption was significantly higher in the EU, fluctuating between €0.205 per kWh (minimum in 2012) and €0.217 per kWh (maximum in 2019) over the period 2013-2020, before an important rise of the prices in the following years: 7.2% in 2021, 17.3% in 2022 and 7.5% in 2023 to reach €0.288 per kWh at the end of the period.

Gas prices for households

The prices of natural gas for households, presented in Figure 5, refer to prices for households with medium annual consumption of natural gas, i.e. between 20 and 200 gigajoule (GJ) per year. The gas prices in € per GJ include levies, VAT and all other taxes.

Figure 4: Gas prices for households, 2013-2023
Source: Eurostat (nrg_pc_202) and (enps_nrg_prchh)

Gas price for households with medium annual consumption was high in Palestine. The price fluctuated from €23.800 per GJ (2013) to €37.200 per GJ (2022), with 2-digits increases in 2017 (19.5%), 2019 (13.8%), 2021 (11.7%) and 2022 (11.4%). Data are not available for 2023.

Data for the household gas price in Jordan is only available for 2016, 2017 and 2018. The gas price in Jordan decreased over these years, from €9.453 per GJ in 2016 to €8.750 per GJ in 2018 (-7.4%).

Tunisia's gas price for households increased overall, from €3.200 per GJ in 2017 to €3.993 per GJ in 2023, the highest price recorded in Tunisia in this period (data not available before 2017). The lowest price was recorded in 2018, at €3.114 per GJ. The prices decreased in 2018 and 2021, by -2.7 and -2.0%, respectively. There were high price increases in 2019 (10.3%) and 2022 (9.0%). Data are not available before 2017.

Gas price for households with medium annual consumption was constantly very low all over the period 2013-2023 in Algeria and Libya, reflecting their status of major natural gas producers and their policy of keeping energy affordable for their citizens.

In Algeria a further drop in the gas price for households by -14.7% was recorded in 2021, with the price falling to €0.573 per GJ and remaining at that level also in 2022 and 2023. Data are not available before 2018.

The gas price for households was relatively higher in Libya than in Algeria, but it fell to €0.374 per GJ in 2021 (-70.4% year-on-year). However, as for the electricity price, the scale of the fall in the gas price was magnified by the devaluation of the Libyan dinar at the beginning of 2021. Measured in dinars per kWh, the fall in the price was -7.2%. Data for 2022 and 2023 are not available.

Data for Egypt, Israel, Lebanon and Morocco are not available.

Between 2013 and 2023, gas prices for households in the EU showed a 2-phase trend. From 2013 to 2017, prices steadily fell by about 10.2%, dropping from €19.96/GJ to €17.93/GJ. After that, prices fluctuated slightly but stayed within a narrow range until 2021, when they reached €19.72/GJ, just 1.2% lower than in 2013. This relatively stable pattern changed in 2022, coinciding with the start of the Russia’s war of aggression against Ukraine. That year, prices rose by 40.8% to €27.76/GJ, followed by a further increase in 2023 to €32.09/GJ.

Compared to the EU, the ENP-South countries, apart from Israel, consistently had much lower household gas prices from 2013 to 2023, particularly in gas-producing nations like Libya and Algeria. In Algeria, prices remained exceptionally low in 2022 and 2023, while EU prices surged to high levels.

Long-term unemployment rate

The long-term unemployment rate presented in Figure 6 represents the percentage of the labour force that is unemployed and has been actively seeking employment for at least a year. Unemployment results in a loss of income, and if it persists long-term it increases the risk of falling into poverty.

Figure 5: Long-term unemployment rate, 2013-2023
Source: Eurostat (une_ltu_a) and (enps_lfsa_urgan)

Between 2013 and 2023, long-term unemployment rates varied significantly across ENP-South countries. In Lebanon, the rate more than doubled from 6.3% in 2018 to 14.3% in 2022, with data only available for these 2 years.

In Palestine, the rate fluctuated, increasing from 9.3% in 2013 to 9.6% in 2022, with notable variation in between, ranging from 8.8% in 2016 to 12.0% in 2014. In 2022, the rate fell by 1.9 percentage points compared to 2021 (11.5%). Furthermore, the sharp rise in 2023 is attributed to a break in the time series, as data now reflects the West Bank only due to ongoing conflict with Israel.

Morocco saw its long-term unemployment rate increasing from 5.9% in 2013 to 7.3% in 2017, before declining slightly in 2018 (6.5%) and 2019 (6.3%), and rising again in 2021 to 8.9%. Data for 2022 and 2023 are not available for Morocco.

In Algeria, the rate remained stable between 2013 and 2019, ranging from 5.1% in 2016 to 7.4% in 2019 (the most recent data). Tunisia's long-term unemployment rate fluctuated between 5.6% in 2019 and 7.0% in 2022, with no data for 2013-2018 and 2023.

In Egypt, the rate was stable between 2.7% in 2013 and 3.5% in 2014, before rising sharply by 7.7 percentage points in 2016 to 10.4%. It then decreased progressively, reaching 2.9% in 2020, with a slight increase to 3.0% in 2021. Data for 2022 and 2023 are unavailable for Egypt. Israel, on the other hand, maintained a very low and stable long-term unemployment rate throughout the period, ranging from 0.7% in 2013 to 0.2% in 2018, 2019, 2020, and 2023.

In the EU, the long-term unemployment rate steadily declined from 5.4% in 2013 to 2.1% in 2023, with an exception in 2021, when, following the COVID-19 pandemic it increased by 0.3 percentage points compared to 2020. In contrast, the unemployment rate in the ENP-South (excluding Israel) was higher at the conclusion of the observed period than at its commencement.

Data are not available for Jordan and Libya.

Persons below the national poverty line

The poverty rate as defined by the national poverty line corresponds to the share of the population that fails to meet the standard considered necessary to cover basic needs. The so-called 'poverty headcount ratio at national poverty lines' is normally estimated based on national household surveys on income, expenditure, consumption and living conditions, such as the National survey on consumer spending and household standard of living in Algeria, or the Household income, expenditure and consumption survey in Egypt, or other household income, expenditure and consumption surveys^[2].

The 'poverty headcount ratio at national poverty lines' is presented in Figure 6. It should be noted that the poverty rates at national poverty lines are not suited to compare countries, as the national poverty lines are specific to each country. However, they are useful to analyse poverty within a specific country.

Figure 6: Persons living below the national poverty line, 2023
Source: Eurostat (enps_ilc_natln)

In 2023, the ENP-South countries showed wide variation in the share of people living below the national poverty line. Egypt had the highest rate at 29.7% (2020 data), followed by Israel (17.8%, 2022), Tunisia (16.6%, 2021), and Palestine (11.5%, West Bank only). Morocco reported the lowest rate at 3.9% (2022, estimated). The comparability is still limited by differences in data years, geographic coverage, and the use of estimates in some cases.

Data for the EU, Algeria, Jordan, Lebanon and Libya are not available.

Source data for tables and graphs

European Neighbourhood Policy — South countries — living conditions: tables and figures

Data sources

The data for ENP-South countries are supplied by and under the responsibility of the national statistical authorities of each country on a voluntary basis. The data mainly result from an annual data collection cycle that has been established by Eurostat. These statistics are available free-of-charge on Eurostat's website, together with a range of different indicators covering most socio-economic areas.

For the EU, the EU statistics on income and living conditions (EU-SILC) is a key source for data on living conditions of the European population. It aims to collect timely and comparable data on income, poverty, social inclusion and living conditions. Eurostat's website provides an overview of legislation related to EU-SILC, as well as an online publication on EU statistics on income and living conditions (EU-SILC) methodology and an overview article over main results on Living conditions in Europe - poverty and social exclusion.

In this article, SILC data are complemented by household consumer prices sourced from the HICP where applicable, and from the survey on energy prices, as well as unemployment data from the Labour Force survey.

In the ENP-South countries, data are generally collected through national household surveys on income, expenditure, consumption and living conditions, such as the Household Income and Expenditure Surveys (HIES)^[3]. Data on household income and expenditure may also be collected using income surveys, household budget surveys, or living standard measurement surveys. In the ENP-South countries, poverty estimates are generally based on surveys such as the National survey on consumer spending and household standard of living in Algeria, the Household income, expenditure and consumption survey (HIECS) in Egypt, the Household expenditure and income survey (HEIS) in Jordan, the National household consumption and expenditure survey (ENCDM) in Morocco and the National survey on the budget, consumption and standard of living of households (EBCNV) in Tunisia. These representative surveys are generally carried out at regular intervals, e.g. on average every two years in Egypt and every seven years in Morocco.

National poverty lines are generally applying a 'cost of basic needs' (CBN) approach to estimate poverty. These basic needs are generally defined through estimated required calories per capita, and a common food and non-food basket for all households. The calculation generally includes expenditure groups such as food, clothing, education, health, dwelling-related expenditures, communications, transportation, an estimate of the rental value for the dwelling the household lives in, general services, and purchases of other non-durable goods. Separate poverty lines may be calculated for urban and rural regions when prices vary considerably between urban and rural regions.

Context

The Covid-19 crisis and the subsequent cost-of-living crisis have had a direct and indirect impact on the general population but in particular on vulnerable groups such as the elderly, people with disabilities, young people, low-wage earners, part-time workers and people with precarious work contracts. Pressure on the living conditions of households have increased through rising consumer prices and energy prices in particular, together with a generally uncertain economic environment.

Since late 2023, developments in the Middle East have contributed to a more challenging environment for ENP-South countries. Economic conditions have been affected by rising energy prices, which particularly impact energy-importing countries such as Egypt, Morocco, and Tunisia. Regional trade and cooperation have also experienced disruptions. At the same time, existing humanitarian pressures, including migration and displacement, have increased, especially in countries like Jordan and Lebanon that already host significant refugee populations. These factors have added to broader pressures on living conditions and public services across the region.

EU cooperation with the Southern Neighbourhood takes place in the framework of the European Neighbourhood Policy (ENP). The ENP was launched in 2004 and reflects the EU's desire to build on common interests with partner countries and its commitment to work jointly in key priority areas.

The Joint Communication on Renewed Partnership with the Southern Neighbourhood – A new Agenda for the Mediterranean, accompanied by an Economic and Investment Plan for the Southern neighbours, of 9 February 2021 further guides cooperation with the ENP-South countries.

In cooperation with its ENP partners, Eurostat has the responsibility to promote and implement the use of European and internationally recognised standards and methodology for the production of statistics, necessary for designing and monitoring policies in various areas. Eurostat manages and coordinates EU efforts to increase the capacity of the ENP countries to develop, produce and disseminate good quality data according to European and international standards. Additional information on the policy context of the ENP is provided on the website of Directorate-General for Middle East, North Africa and the Gulf (DG MENA).

The EU has been supporting statistical capacity building in the region for a number of years, among others by providing technical assistance to national statistical authorities and by sharing best practice and transferring know-how. A key tool for this statistical cooperation is the MEDSTAT programme, a multiannual regional cooperation programme for statistics addressing common issues and requirements.

Footnotes

This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the Member States on this issue. ↑
Information on national poverty measurement and relevant household surveys can be found in the country poverty and equity briefs (PEBs) on the World Bank's Poverty and Inequality Platform (PIP). ↑
See e.g. the International Labour Organization's Survey Catalogue. ↑