These meetings represent a high-level forum where the top decision-makers of the IMF and WB, together with the governors and finance ministers of member countries in these international financial institutions, come together to discuss the latest developments of the world economy.

The press release of the IMF’s International Monetary and Financial Committee reads: The global economy showed resilience, according to the 2023 global growth outlook, which was slightly revised last spring. But the recovery has been uneven, as economic activity in many countries remains well below pre-pandemic trends, while divergences between countries are widening. Medium-term global growth projections remain weak. Overall global inflation has declined, although in some countries it remains well above target. Core inflation has turned out to be more stable than forecast. Thanks to the assertive actions taken in early 2023 to curb financial turbulence, short-term risks are more balanced but remain on the downside. The war in Ukraine, growing debt vulnerabilities, tightening financial conditions, increased climate shocks, growing inequality, refugees and displaced populations, food insecurity, and the risk of fragmentation remain concerns for the global economy, affecting countries the most and the strata of the population most in need.

The Bank of Albania was represented in these meetings with a delegation headed by the Governor of the Bank of Albania, Gent Sejko, the First Deputy Governor of the Bank of Albania, Luljeta Minxhozi, as well as other senior executives.

During the meetings with the representatives of the IMF and the World Bank, Governor Sejko informed the attendees about the latest developments in the Albanian economy. He stated that Albania, like other countries, was affected by unfavorable global economic shocks. Inflation in Albania began to rise in late 2021, accelerated with the onset of Russia’s aggression in Ukraine, peaked in October 2022, and began to slow down gradually thereafter.

The Governor added that the Bank of Albania, in order to guarantee the country’s monetary and financial stability, started the process of normalizing the stance of monetary policy, starting from March 2022. This normalization was realized through the increase of the core interest rate, from the minimum of 0.50 % at the beginning of 2022 to the level of 3.00% in March of 2023.
In this context, Governor Sejko emphasized that the policy pursued by the Bank of Albania was fully based on transparent data that were effectively communicated to local actors. He added that currently, the core interest rate in the country is low compared to the countries of the region and those of the EU, reflecting a lower overall inflation rate. Meanwhile, forecasts point to a gradual reduction, with a return to our 3% target rate expected to be reached by mid-2024.
Regarding macroeconomic policies, the Governor emphasized that they will be harmonized and will work together to ensure sustainable economic growth in the medium term.
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