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Data extracted in April 2025. Planned article update: March 2026.

Highlights

Moldova, Georgia and Armenia all had larger income inequalities than the EU in 2023, with Gini coefficients of 36.2, 36.0 and 34.8, respectively. In comparison, the EU had a Gini coefficient of 29.6.

In 2023, long-term unemployment was 6.5% in both Armenia and Georgia, well above the 2.1% recorded in the EU.

All European Neighbourhood East countries observed higher at-risk-of-poverty rates than the EU in 2023. The highest rate was recorded in Armenia, at 23.7% of the population. The at-risk-of-poverty rate in the EU was 16.2%.

This article is part of an online publication. It presents information on living conditions in 5 European Neighbourhood Policy-East (ENP-East) countries, namely, Armenia, Azerbaijan, Georgia, the Republic of Moldova and Ukraine, compared with the European Union (EU). Georgia, Moldova and Ukraine are also candidate countries, the European Council having granted Moldova and Ukraine candidate status on 23 June 2022 and Georgia on 14 December 2023. This article does not contain any data on Belarus, as statistical cooperation with Belarus has been suspended as of March 2022. Data shown for Georgia exclude the regions of Abkhazia and South Ossetia over which the government of Georgia does not exercise control. The data managed by the National Bureau of Statistics of the Republic of Moldova does not include data from the Transnistrian region over which the government of the Republic of Moldova does not exercise control. Since 2014, data for Ukraine generally exclude the illegally annexed Autonomous Republic of Crimea and the City of Sevastopol and the territories which are not under control of the Ukrainian government. As of 2022, data on Ukraine is limited due to reporting units being exempted from mandatory data submission to the State Statistics Service of Ukraine under the martial law, effective as of 3 March 2022, following Russia's war of aggression against Ukraine.

The article includes information on median income as well as the income distribution, measured through the Gini coefficient, the risk of poverty after social transfers, long-term unemployment, as well as consumer prices, electricity prices and gas prices.

Gini coefficient of equivalised disposable income

The Gini coefficient measures inequality in how income is distributed within a country. 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. In Figure 1, the Gini coefficients for equivalised disposable income in the ENP-East countries are presented and compared with the coefficient for the EU.

The disposable income of a household is its total net income, including income from work and investments and from social benefits, but after taxes and social contributions. 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.

For most of the period from 2013 to 2023, Georgia had the highest income inequality, as measured by the Gini coefficient, among the ENP-East countries. However, Georgia experienced a notable reduction in income inequality during this period, with its Gini coefficient decreasing from 42.1 in 2013 to 36.0 in 2023, falling by -6.1 in total. Particularly large decreases were recorded in 2018 (-1.8) and 2020 (-1.9). In 2022, Georgia’s Gini coefficient declined to 35.7, remaining slightly above the levels in Armenia and Moldova. By 2023, a modest increase to 36.0 placed Georgia just below Moldova (36.2), despite the uptick, reflecting a continued trend toward reduced inequality.

Armenia also experienced a decline in income inequality between 2013 and 2023, with its Gini coefficient overall falling by -2.4 from 37.2 in 2013 to 34.8 in 2023. In most of the years of this period there were only minor year-on-year changes. Most of the overall change was recorded in a few years, with larger decreases in income inequality in 2017 (-1.6), 2020 (-1.7) and 2022 (-1.2) but a notable increase in 2019 (+2.0).

Although Moldova's Gini coefficient rose considerably from 33.3 in 2013 to 36.2 in 2023, most of this could be attributed to a methodological change in 2014, resulting in a year-on-year change of +3.2 in the coefficient. Between 2014 and 2023, the income inequality overall fell by a modest -0.3. However, there were considerable fluctuations in Moldova’s Gini coefficient within this period, with strong decreases in 2017 (-2.1) and 2018 (-1.0) almost completely offset by increases of 0.8 in 2020 and 0.9 in 2021 and 2023. A further methodological change in 2019 should also be noted.

Ukraine maintained by far the lowest Gini coefficient of inequality in equivalised disposable income within the ENP-East region, with the coefficient consistently below 25.0 over the period 2013-2021 (2022 and 2023 data not available). This was also substantially lower than in the EU during this period. However, it should be noted that Ukraine uses a different calculation of equivalised households, with the first adult counting 1.0 and each other household member 0.7. Thus, the level of Ukraine’s Gini coefficient for disposable equivalised household income should not be directly compared with those of the other ENP-East countries and the EU. It should also be noted that Ukraine reported its Gini coefficient rounded to whole numbers, without decimals, until 2016. Although the coefficient overall increased by just +0.4 from 24 (no decimals available) in 2013 to 24.4 in 2021, there were considerable fluctuations in-between. The coefficient value ranged from a low of 22 in 2016 (no decimals available) to a high of 24.9 in 2019.

Data on the Gini coefficient are not available for Azerbaijan.

The Gini coefficient in the EU fell slightly in most years between 2014 and 2023 (2013 data not available), overall falling by -1.3 from 30.9 in 2014 to 29.6 in 2023. With the exception of a fall of -0.6 in 2022, the year-on year changes in income inequality only ranged between -0.3 and +0.2 within this period.

line chart showing the development in the Gini coefficient of equivalised disposable income in the EU, Moldova, Georgia, Ukraine, Armenia and Azerbaijan, for the years 2013 to 2023. The lines are colour coded according to country.
Figure 1: Gini coefficient, 2013-2023
Source: Eurostat (ilc_di12) and (enpe_ilc_di12b)

Consumer prices for all items

A consumer price index (CPI), 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. In the EU, the Harmonised index of consumer prices (HICP) is used to provide a consistent CPI for the EU as a whole and one that is directly comparable between EU countries.

Between 2013 and 2023, all ENP-East countries experienced periods of high inflation. Across the region, inflation accelerated considerably in 2021, peaking in 2022. Despite inflation slowing down in 2023, it remained at high levels in several of the countries.

Generally, this trend followed international developments, with inflation pressures from disruptions in international supply chains following the COVID-19 pandemic and from Russia’s war of aggression against Ukraine from 2022. This strongly affected world market prices of oil, natural gas, fertilizer and cereals, among others, with knock-on effects of sharply increasing energy prices also on prices of other goods categories in addition to the direct effects on Ukraine and its neighbours.

For 2013 and 2014, consumer price index data with 2015 as base year are not available for Ukraine. However, corresponding data on the average annual rate of change in consumer prices show that consumer prices fell slightly by -0.3% in 2013, before rising substantially, by 12.1%, the following year. The average annual change in consumer prices was close to one half (48.7%) from 2014 to 2015, reflecting the economic impacts of the illegal Russian annexation of Crimea in 2014. Throughout the period for which index data are available, 2015-2023, Ukraine experienced some of the highest inflation rates among the ENP-East countries. It recorded the highest year-on-year increases in consumer prices each year from 2016 to 2019 and the second highest from 2021 to 2023. In the first part of this period, inflation in Ukraine ranged between 14.4% (2017) and 7.9% (2019). The downward trend continued in 2020, amid the COVID-19 pandemic, with the inflation rate falling to 2.7%, below the average in the ENP-East countries that year. As in the other countries, inflation picked up again in 2021, to 9.4%. The beginning of Russia’s war of aggression against Ukraine in 2022 led to a spike in inflation, at 20.2%. This rise in consumer prices decelerated in 2023, with the inflation rate slowing to 12.9%, more in line with the levels last seen in 2016-2017.

In the period 2013-2023, Moldova also recorded high annual inflation rates, although mostly lower than those in Ukraine. From 2013 to 2021, the year-on-year changes in consumer prices ranged from 3.0% (2018) to 9.7% (2015). The increase of 5.1% in 2021 was more in line with this long-term trend than the considerable increases seen in the other ENP-East countries that year. However, in 2022, Moldova experienced the sharpest rise in consumer prices among the ENP-East countries, increasing by 28.7%, with the Russian war of aggression against Ukraine, Moldova’s neighbour, affecting in particular energy supply and energy prices. As in the other countries, inflation slowed down in 2023, although the 13.4% recorded in Moldova was still the highest among them.

Between 2013 and 2020, Azerbaijan saw low and relatively stable increases in consumer prices, with rates between 1.4% (2014) and 4.0% (2015). This trend was only interrupted by sharp rises in 2016 and 2017, when inflation surged to 12.4% and 12.9%, respectively. In line with global trends, inflation increased to 6.7% in 2021, up from 2.8% the previous year, and accelerated further to 13.9% in 2022. However, in 2023 inflation eased somewhat, slowing down to 8.8%.

Georgia's consumer price inflation ranged between -0.5% (2013) and 6.0% (2017) from 2013 to 2020. Inflation spiked in 2021, with consumer prices rising by 9.6%, the highest rate among the ENP-East countries that year. This upward trend continued in 2022, with inflation increasing further to 11.9%. However, this increase from 2021 to 2022 was smaller than in most of the other ENP-East countries. Inflation slowed significantly in 2023, with consumer prices rising by just 2.5%.

Consumer prices in Armenia grew by 5.8% in 2013, with inflation falling to 3.0% in 2014 but rising to 3.7% in 2015. However, in 2016, consumer prices fell significantly, resulting in a deflation of -1.4%. From 2017 to 2020, increases in the consumer price stabilised at between 1.0% (2017) and 2.5% (2018) year-on-year, before accelerating to 7.2% in 2021. Inflation peaked in 2022, at 8.6%, although as in Georgia the increase in the inflation rate was much more moderate than the year before. In 2023, inflation eased to a moderate rate of 2.0%.

In the EU, consumer prices grew steadily and slowly in the period 2013-2020, with year-on-year increases of 0.1% (2015) to 1.8% (2018). The increase in the inflation rate in 2021, 2.9%, was relatively moderate. It accelerated to 9.2% in 2022, before easing to 6.4% in 2023. Overall, between 2013 and 2023, EU maintained low and stable consumer prices until a sharp inflation spike in 2022 coinciding with the post-pandemic economic shifts and the Russian war of aggression against Ukraine. In contrast, ENP-East countries experienced higher and more volatile inflation throughout the decade. While Ukraine and Azerbaijan saw double-digit inflation between 2016–2018, Moldova reached the region’s highest peak in 2022 at 28.7%. Although inflation surged throughout Europe and its neighbourhood in 2022, it affected the ENP-East countries more noticeably, reflecting their less resilient economies and greater vulnerability to regional challenges.

line chart showing the development in the consumer price index in the EU, Moldova, Georgia, Ukraine, Armenia and Azerbaijan for the years 2012 to 2022. The lines are colour coded according to country.
Figure 2: Consumer prices, 2013-2023
Source: Eurostat (prc_hicp_aind) and (enpe_cpi).

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 for 5 different levels of annual electricity consumption. The presented electricity prices for households are based on prices in the middle consumption category, with annual electricity consumption between 2 500 and 5 000 kilowatt-hour (KWh) per year. The electricity prices in € per KWh are consumer retail prices and include all levies and taxes, also VAT.

The data on electricity prices in the ENP-East countries are somewhat limited for the period 2013-2023, with data before 2015 only available for Armenia and data after 2021 not available for Ukraine and Azerbaijan. There have been considerable fluctuations in the electricity prices for households over the period. In particular, the prices fell in all ENP-East countries except Moldova in 2020, during the COVID-19 pandemic. In contrast, there were sharp price increases in 2022 in all 3 countries for which data are available, corresponding to the beginning of Russia’s war of aggression against Ukraine and the subsequent turbulences in regional and international energy markets. Appreciations of national currencies in 2022 and 2023 influenced the corresponding prices expressed in euro. Specifically, the Armenian dram strengthened against the euro by 28.6% from 2021 to 2023, while the Georgian lari strengthened by 25.5% over the same period. In the EU, there were only minor fluctuations in electricity prices until 2020, but the prices began to rise rapidly from 2021.

Ukraine and Azerbaijan had the lowest electricity prices, measured in euro cent per kilowatt/hour (kWh), among the ENP-East countries. For Ukraine, data are only available 2016-2021. From 2016 to 2017, the household electricity prices increased by more than a third (36.4%) from 2.85 to 3.88 cent per kWh. In the next years, the price continued to grow relatively rapidly, by 5.7% in 2018 and 13.3% in 2019, before decreasing (-7.2%) in 2020. However, in 2021 the prices resumed the previous trend, rising by 12.5% to 4.85 cent per kWh. Data for Azerbaijan are only available 2015-2021. It experienced a drop of almost one quarter (-24.1%) in household electricity prices from 2015 to 2016, decreasing from 5.22 to 3.96 cent per kWh. In the following years, the prices fluctuated by between -3.4% (2018) and +5.5% (2019). The price stood at 3.98 cent per kWh in the last year available (2021).

The electricity prices in Georgia and Armenia were roughly at the same level and followed similar trends throughout the available period. Data for Georgia are available 2018-2023, starting at 7.13 cent per kWh in 2018 and ending at 8.57 cent per kWh in 2023. In-between, there were considerable year-on-year changes, with prices falling by -13.8% to 6.16 cent per kWh in 2020 but rising by 30.9% to 8.45 cent per kWh in 2022. Armenia is the only ENP-East country for which data are available for the whole period 2013-2023. However, since 2014, prices have been rounded to the nearest full cent. In 2013, electricity cost the households in Armenia with medium annual consumption 4.90 cent per kWh, rising to 6 cent per kWh in 2014. From 2015 to 2021, the reported price varied between 7 and 8 cent per kWh (no decimals available). In 2022, the price increased to 10 cent per kWh, corresponding to a year-on-year increase of 3 cent (+43%), rising further to 11 cent per kWh in 2023.

Moldova recorded the highest electricity price among the ENP-East countries throughout the period with data available (2015-2023). At the beginning of this period, the price stood at 8.50 cent per kWh, a level similar to those in Georgia and Armenia. In 2016-2020, the electricity price generally trended upwards, with year-on-year increases between 10.9% (2016) and 3.0% (2018), with the exception of a decline of -4.6% in 2019. Following a substantial price fall of -15.6% in 2021, in 2022 electricity prices almost doubled (+96.5%) to 17.09 cent per kWh. This was by far the highest electricity price recorded among the ENP-East countries. However, in 2023 the price fell by 4.4% to 16.33 cents per kWh. The period covered by this data was marked by Moldova’s efforts to achieve independence from Russian energy supplies, ongoing disputes over payments for these supplies, integration into the European energy market, as well as Russia’s war of aggression against Ukraine.

The EU consistently experienced higher electricity prices than the ENP-East countries throughout the period 2013-2023. With the exception of Moldova, the gaps between EU electricity prices and electricity prices in these countries have widened over time. The EU generally saw increases in electricity prices over the period 2013-2020, ranging from 0.7% (2015) to 2.0% (2019), although with moderate declines in 2016 (-1.2%) and 2020 (-1.7%). However, from 2021 the electricity price grew at a much higher rate, with the strongest increase (+17.3%) in 2022, before peaking at 28.85 cent per kWh in 2023. The electricity prices presented for the EU are calculated as annual averages of the prices per semester.

line chart showing the development in electricity price including all levies and taxes, for households with medium annual electricity consumption in the EU, Moldova, Georgia, Armenia and Azerbaijan, for the years 2013 to 2023. The lines are colour coded according to country.
Figure 3: Electricity prices for households, 2013-2023
Source: (nrg_pc_204) and (enpe_nrg_prchh)

Gas prices for households

The prices of natural gas for households refer to prices for households with medium annual consumption of natural gas, i.e. between 20 and 200 GJ per year. The gas prices in € per GJ include levies, VAT and all other taxes. Between 2013 and 2023, the gas prices households had to pay increased significantly in all the ENP-East countries and the EU, with particularly strong increases recorded in 2021-2023. It should be noted that data before 2016 are only available for Armenia and the EU. Data for Azerbaijan are not available. Appreciations of national currencies in 2022 and 2023 influenced the corresponding prices expressed in euro. Specifically, the Armenian dram strengthened against the euro by 28.6% from 2021 to 2023, while the Georgian lari strengthened by 25.5% over the same period.

From 2016 to 2020, gas prices fluctuated from year to year in Moldova. From €8.28 per GJ in 2016, the prices rose in 2017 and 2019, but fell in 2018 and 2020, ranging between €7.54 per GJ (2018) and €8.59 per GJ (2017). The price rose significantly to €9.90 per GJ (+26.4%) in 2021 before increasing to €26.72 per GJ (+169.9%) in 2022, the sharpest spike in prices in any of the ENP-East countries. In 2023, the price growth slowed down, rising by just 2.7% to €27.45 per GJ. Until 2022, natural gas imports to Moldova came largely from Russia. However, following the beginning of Russia's war of aggression against Ukraine, Moldova needed to acquire natural gas from other sources.

Together with Moldova, the gas prices for households in Armenia have consistently been among the highest among the ENP-East countries. The prices grew from €8.53 per GJ in 2013 to €10.30 per GJ in 2015 and 2016. From this plateau, they decreased each year except 2019 to reach €8.17 per GJ in 2021. As in all other ENP-East countries for which data are available, the household gas prices rose sharply (+30.4%) in 2022, with this upward trend continuing also in 2023 (+10.0%) to €11.72 per GJ. These sharp rises placed Armenia as the ENP-East country most impacted by gas price increases after Moldova.

The data for Ukraine only cover the period 2016-2021. The gas prices for households steadily levelled up from €5.82 per GJ in 2016 to €6.86 per GJ in 2019. A decline of -11.0% in 2020 was followed by a rise of 24.5% to a price of €7.60 per GJ in 2021.

Between 2018 and 2021, gas prices in Georgia showed a consistent decline, reaching their lowest level in 2021 at €3.55 per GJ. However, in 2022 and 2023, the gas prices charged to households increased by 29.6% and 8.0%, respectively, rising to €4.98 per GJ in 2023.

The gas prices for households with medium annual consumption in the EU moved within the band from €17.93 per GJ (2017) to €19.96 per GJ (2013) in the period 2013-2021, trending lower year-by-year up to 2017 before starting to fluctuate. Subsequently, in 2022, gas prices increased to €27.76 per GJ (+40.8% compared to 2021), followed by a further increase to €32.09 per GJ in 2023 (+15.6%). Relative to the EU, ENP-East countries maintained significantly lower household gas prices throughout the period.

line chart showing the development in prices of natural gas including all levies and taxes, for households with medium annual consumption of natural gas in the EU, Moldova, Georgia and Armenia, for the years 2013 to 2023. The lines are colour coded according to country.
Figure 4: Gas prices for households, 2013-2023
(€ per gigajoule)
Source: (nrg_pc_202) and (enpe_nrg_prchh)

Long-term unemployment rate

The long-term unemployment rate 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.

From 2013 to 2023, long-term unemployment generally declined across the ENP-East region. Armenia, despite having the highest rates, showed steady improvement. Georgia’s long-term unemployment rates also followed a gradual downward trend, with temporary increases observed in 2020 and 2021. Azerbaijan maintained stable, low levels, aligning with the EU average by 2023. Moldova consistently recorded the lowest rates, while Ukraine diverged from the regional trend with increasing rates in recent years.

Consistent with the trends outlined earlier, Armenia’s long-term unemployment remained persistently high throughout 2013–2023, the rate of 8.4% in 2013 should be viewed in the context of a differing definition applied that year. From 2014 to 2023, long-term unemployment only rose from 2014 to 2015, peaking at 11.2%, but decreased gradually to 6.5% by 2023. This was still the highest long-term unemployment rate among the ENP-East countries in 2023, matching the rate recorded in Georgia the same year. There was a methodological break in the time series in 2018, with definitions brought into line with updated ILO standards and methodologies.

Georgia also recorded a decline in long-term unemployment from 7.3% in 2013 to 4.3% in 2019. Following a break in the time series in 2020, in connection with implementation of updated ILO standards, the long-term unemployment rate rose by 1.5 pp in 2020 and 1.4 pp in 2021 to a peak at 7.2%. However, the rates decreased thereafter, decreasing to 6.5% in 2023.

Azerbaijan had the most stable long-term unemployment rate among the ENP-east countries, with only minor variations between 2013 and 2022. The peak during this period was reached at 3.4% in 2016, the lowest point at 3.0% in 2018, 2019 and 2022. In 2023 long-term unemployment in Azerbaijan dropped to 2.1%.

Long-term unemployment in Ukraine was generally low between 2013 and 2021 (2022 and 2023 data not available), fluctuating year-on-year in the range between 1.0% (2019) and 2.5% (2017). Larger increases were registered in 2015 (+0.9 pp) and 2020 (+1.0 pp), larger decreases in 2018 (-0.6 pp) and 2019 (-0.9 pp). In 2021, the last year for which data are available, long-term unemployment in Ukraine was 2.4%.

Moldova's long-term unemployment rates were the lowest among the ENP-East countries. In 2013, the rate stood at 1.3%. In the subsequent years, long-term unemployment remained relatively stable between 0.7% (2020, 2022) and 0.9% (2014, 2017, 2019), with the exception of a peak at 1.4% in 2015. In 2023, long-term unemployment made up 0.8% of the labour force in Moldova. There were breaks in the time series in 2014, when the population definition was changed, and in 2019 when a new sampling plan for the labour force survey (LFS) was introduced and updated ILO standards implemented.

Between 2013 and 2023, the EU’s long-term unemployment rate declined steadily from 5.4% to 2.1%, a reduction of over 60%, despite a temporary post-pandemic increase in 2021. In contrast, ENP-East countries showed more varied trends: while Armenia and Georgia maintained high rates despite gradual improvements, Moldova, Ukraine, and Azerbaijan recorded consistently low levels.

line chart showing the development in long-term unemployment in the EU, Moldova, Georgia, Ukraine, Armenia and Azerbaijan for the years 2013 to 2023. The lines are colour coded according to country.
Figure 5: Long-term unemployment rate, 2013-2023
Source: (une_ltu_a) and (enpe_lfsa_urgan2).

Median annual net income

The median annual net income is defined as the 'median equivalised annual net income'. This represents the middle value of annual net income per person, after adjusting for household size and composition. The annual net income is defined as total net income, including income from work and investments as well as social benefits, after any taxes are deducted and social contributions paid.

It should be kept in mind that changes in median income measured in euro were also influenced by strong appreciations of national currencies in 2022 and 2023. Specifically, the Armenian dram strengthened against the euro by 28.6% from 2021 to 2023, while the Georgian lari strengthened by 25.5% over the same period.

Among the ENP-East countries for which data are available, Moldova showed the most rapid increase in median income. However, data from 2019 onwards are not directly comparable with those from previous years, due to a methodological change in the Household Budget Survey that year. Following a period of relative stability between 2013 and 2016, ranging between €1 335 per capita in 2013 and €1 250 in 2015, Moldova’s median income grew rapidly in 2017 and 2018, reaching €1 658 per capita in 2018. Following the break in series in 2019, net income stood at €2 014 per capita. It continued to grow in the subsequent years, with sharp increases in 2022 (+24.1%) and 2023 (+16.1%) to €3 308 per capita.

Between 2013 and 2019, the net median income in Georgia changed only marginally, ranging between €1 325 (2017) and €1 386 (2014). During the COVID-19 pandemic in 2020, it decreased rapidly (-20.8%) to €1 097. However, it rose strongly in each of the following 3 years, by 29.9%, 36.5% and 28.6%, respectively. As a result, medium net income had risen to €2 501 per capita by 2023.

Ukraine's median income, starting at €2 064 per capita in 2013, was higher than those recorded in both Moldova and Georgia that year. It was almost halved (-44.6%) to €1 144 in 2014, following Russia's illegal annexation of Crimea and the effects this had on the economy. After a consolidation in 2015 and 2016, the recovery in the Ukrainian economy enabled median income to rise rapidly to reach €2 054 per capita in 2019. Despite a minor dip in 2020, median net income continued its rapid rise in 2021, to €2 249 per capita. Data are not available for Ukraine from 2022 on.

Between 2013 and 2023, median equivalised annual net income in the EU increased steadily, from €14 962 in 2013 to €20 350 in 2023 - an overall gain of 36%. In the ENP-East region, median equivalised net income trends remained considerably lower and displayed varying trajectories. Moldova recorded the most consistent growth. Median equivalised annual net income more than doubled over the decade, from €1 335 in 2013 to €3 308 in 2023. Georgia’s median equivalent income trend showed greater fluctuation, with limited growth in the early years and a decline in 2020 (€1 097), followed by a notable increase to €2 501 by 2023. Ukraine showed a volatile pattern, with a sharp decline between 2014 and 2018, followed by a gradual recovery up to 2021 (€2 249), though no data is available for the most recent years. These income trends underscore persistent gaps with the EU, shaped by structural economic differences, geopolitical shocks, and varying social protection systems.

Data for Armenia and Azerbaijan are not available.

table showing the development in the median annual net income, measured in € per capita, in the EU, Moldova and Georgia, for the years 2013 to 2023. The data in the table is presented by country in the lines and by reference year in the columns.
Table 1: Median equivalised annual net income, 2013-2023
Source: (ilc_di03) and (enpe_ilc_di03)

People at risk of poverty

The at-risk-of-poverty rate measures the share of people that have equivalised disposable income below the national at-risk-of-poverty threshold, calculated after social transfers. The at-risk-of-poverty threshold is set at 60% of the national median equivalised disposable income; it is thus defined separately for each country. Social transfers include items such as pensions, unemployment benefits, family benefits, sickness benefits, housing allowances, as well as other social assistance and benefits. It is important to keep in mind that the at-risk-of-poverty rate does not measure poverty, but low income in comparison to other residents in that country; this does not necessarily imply a low standard of living.

Armenia experienced a continuous decrease in the share of people at risk of poverty between 2013 and 2018, with the at-risk-of-poverty rate decreasing from 32.0% in 2013 to 23.5% in 2018, an improvement of 8.5 pp. However, in 2019 the methodology was changed to measuring the average poverty rate, thus data from 2019 onwards are not comparable to previous years. As a result of this change, the rate shifted up to 26.4% in 2019. Despite a small increase in 2020, the poverty rate resumed its downward trend, decreasing to 23.7% in 2023.

In Ukraine, the at-risk-of-poverty rate remained relatively stable with only smaller fluctuations over the period 2013-2021 (data not available from 2022 onwards). Overall, the share of the population at risk of poverty decreased from 24.8% in 2013, the highest of the period, to 23.4% in 2021 (-1.4 pp). The lowest rate was observed in 2020 (22.3%), during the pandemic. The highest increases were recorded in 2017 (+0.9 pp) and 2021 (+1.1 pp), the largest decrease in 2020 (-2.1 pp).

In Moldova, the share of the population at risk of poverty was 18.8% in 2013, at the beginning of the period. Following a break in the series due to a change in the population concept applied, the rate shifted upward to 25.3% in 2014, rendering the 2013 data not directly comparable with subsequent years. From 2014 to 2018, the at-risk-of-poverty rate in Moldova slowly decreased to 23.4%. A further change in methodology in 2019 again limits comparability with previous years. The rate increased from 20.3% in 2019 to 22.6% in 2021, dipped to 20.1% in 2022, before rising to 20.7% in 2023.

Despite some fluctuations, Georgia experienced a slight downward trend in the share of the population at risk of poverty, overall decreasing from 21.5% in 2013 to 19.8% in 2023 (-1.7 pp). The rate moved between 22.3% (2017) and 18.9% (2021) in the years between, generally decreasing year-on-year but with increases in 2016, 2017 and 2022. It remained stable in 2022 and 2023, at 19.9% and 19.8%, respectively.

Data for Azerbaijan are not available.

The EU witnessed relatively stable levels of people at risk of poverty, with the rate overall decreasing from 16.8% in 2013 to 16.2% in 2023 (-0.6 pp). Over the period 2013-2023, the rate moved only slightly within the range 16.5% (2019, 2022) to 17.5% (2016). The at-risk-of-poverty rate in the EU was consistently lower than in any of the ENP-East countries, however, in most ENP-East countries the rate decreased more significantly during this period.

line chart showing the development in share of the population that were at risk of poverty after social transfers, measured in per cent of the total population, in the EU, Moldova, Georgia, Ukraine and Armenia, for the years 2013 to 2023. The lines are colour coded according to country.
Figure 6: People at risk of poverty, after social transfers, 2013-2023
Source: Eurostat (ilc_li02) and (enpe_ilc_li09a)

Source data for tables and graphs

Data sources

The data for ENP-East countries are supplied by and under the responsibility of the national statistical authorities of each country on a voluntary basis. The data 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 additional indicators for ENP-East countries covering most socio-economic topics.

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, in both monetary and non-monetary terms. The data are generally collected for private households and household members. The legal basis for this data collection exercise is Regulation (EU) 2019/1700 establishing a common framework for European statistics relating to persons and households, based on data at individual level collected from samples.

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

Context

The COVID-19 pandemic, Russia’s war of aggression against Ukraine and the subsequent cost-of-living crisis have had a direct and indirect impact on the general population but in particular on vulnerable groups. Pressure on living conditions of households have increased through rising consumer prices and energy prices in particular, together with a generally uncertain economic environment.

On 2 July 2021, the European Commission and the EU High Representative for Foreign Affairs and Security Policy presented the Eastern Partnership: a Renewed Agenda for cooperation with the EU's Eastern partners. This agenda is based on the five long-term objectives, with resilience at its core, as defined for the future of the Eastern Partnership (EaP) in the Joint Communication Eastern Partnership policy beyond 2020: Reinforcing Resilience – an Eastern Partnership that delivers for all in March 2020. It is further elaborated in the Joint Staff Working Document Recovery, resilience and reform: post 2020 Eastern Partnership priorities, amongst others defining the 'Top 10 Targets for 2025'. The Eastern Partnership’s agenda for recovery, resilience and reform is underpinned by an 'Economic and Investment Plan for the Eastern Partnership (EaP): Investing in resilient and competitive economies and societies' (Annex I of the Joint Staff Working Document). More detailed overviews are given in a Factsheet on the Eastern Partnership Joint Communication, presenting the policy objectives and the specific priorities, as well as in a Factsheet on EU-Eastern Neighbourhood flagship projects 2023-2024.

The Joint Declaration of the Eastern Partnership Summit 'Recovery, Resilience and Reform' of 15 December 2021 reaffirmed the strong commitment to a strategic, ambitious and forward-looking Eastern Partnership. At the Eastern Partnership Foreign Affairs Ministerial meeting of 11 December 2023, the EU, member states and partners declared that they will step up their efforts to implement the Eastern Partnership’s agenda for recovery, resilience and reform, as well as tackling challenges related to the ongoing consequences of the Russian war of aggression against Ukraine for the entire region.

On 14-15 December 2023, the European Council decided to open accession negotiations with Moldova and Ukraine, and granted the status of candidate country to Georgia.

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 Enlargement and Eastern Neighbourhood (ENEST).

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Database
Population and social conditions (enpe_pop)
Living conditions (enpe_livcon)
Income distribution (enpe_incom)
Relative poverty (enpe_pov)
Labour market (enpe_labour)
Unemployment (enpe_lfsa_unemp)
Economy and finance (enpe_ecf)
Consumer price index (enpe_cp)
Energy (enpe_nrg)
Inequality (ilc_ie)
Income inequality (ilc_iei)
Income distribution and monetary poverty (ilc_ip)
Distribution of income (ilc_di)
Unemployment - LFS adjusted series (une)
Harmonised index of consumer prices (HICP) (prc_hicp)
Energy statistics - prices of natural gas and electricity (nrg_price))

Thematic section


Publications


Factsheets

Leaflets

Methodology


External links


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