TIRANA, June 1 /ATA/ – Governor of the Bank of Albania Gent Sejko said Monday that the country’s economy will rebound in 2021 following the tremendous difficulties due to the Covid-19 pandemic.
Presenting the central bank’s annual report for 2019 during an online video-conference with the Parliamentary Committee on Economy and Finance, Governor Sejko noted that “the second quarter of this year will mark the peak of shock on the economy, then the situation will improve at the beginning gradually in the next two quarters and this improvement will turn more obvious and notable during 2021.”
“This scenario predicts a relatively stable inflation rate in 2020 and a gradual increase towards the Bank’s target in the next two years. In this scenario, the pandemic will leave visible, but temporary effects on the country’s economy and finances. Most importantly, it will not affect the economic and financial balances and the medium and long-term development trends,” he said.
In his speech, central bank Governor noted that the new economic reality due to the Covid-19 pandemic requires collaboration of all stakeholders. “In this respect, fiscal policy would play a primary role in efforts to cope with the situation, ensure the necessary funds to support health system, the financial aid for the affected employees, and the measures to improve liquidity to firms, imply the increase of public debt, but they are and remain exceptional. In the current circumstances, the increase of debt is an affordable cost to guarantee the maintaining of the economic and financial equilibriums.
He said that the Bank of Albania will continue to implement an accommodative monetary policy stance, coupled with the supervision and prudential regulation of the banking sector.
Sejko said that the Albanian economy has the premises to successfully withstand this challenge.
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