TIRANA, July 7 /ATA/ – Albanian economy will rebound quickly and it will grow close to 5% in 2021, the Governor of the Bank of Albania Gent Sejko told a press conference on Wednesday, adding that the growth trend will continue also in the next two years.
Sejko said that increasing employment rate, exports and the monetary incentives have supported growth of the country’s economy.
“The Bank of Albania expects all these three factors to improve in the medium-term horizon. According to INSTAT data, the Albanian economy grew by 5.5% in first quarter of 2021, while indirect data suggest even faster growth rates in the second quarter,” Governor Sejko said.
According to him, the recovery of economic activity is expanding on a broad base. In terms of aggregate demand, it reflected expansion of consumption and private investments, increased budget expenditures and the expansion of goods and services. In sectoral terms, it reflected the simultaneous expansion in production sector and services sector.
Central bank governor noted that “the factors supporting economic growth have kept consolidating. Relaxed restriction measures due to the vaccination process, the improvement in business and consumer’s confidence, expansion of foreign demand, and both fiscal and monetary stimulus, have established the necessary premises for a gradual normalisation of economic activity.
“The Supervisory Council deems that the Albanian economy will record faster and stable economic growth rates in the medium-term horizon. These factors are expected to boost the increase of: consumption; exports; and investments; as well as gradually increase incomes in all sectors of economy. The expansion of the demand will support the increase of employment, in turn, further rise in wages, and a gradual convergence of inflation to target within 2022,” Sejko concluded.
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