The outlook presents IMF staff economists’ analyses of global economic developments during the near and medium term. The report focused on inflation and monetary policy, the latest research and findings by the IMF regarding the role played by the expectations amid the current environment with high inflation and its impact on monetary policy.

According to the IMF’s World Economic Outlook, the global economy is slowly recovering in the wake of the negative spillovers from the pandemic, Russia’s invasion of Ukraine and the cost of living crisis. In retrospect, the consistency has been remarkable. Looking ahead, global economic growth is projected to slow from 3.5% in 2022 to 3.0% in 2023 and 2.9% in 2024.

Second Deputy Governor of Albania’s central bank, Natasha Ahmetaj, said in remarks at the event that with the rapid rise in prices, almost all main central banks embarked on a rapid normalization of monetary policy to combat inflation, in a bid to avoid erosion of the households’ purchasing power and monetary and financial instability.

She noted that the key interest rates applied by central banks mainly guide the global monetary policy trends.

Ahmetaj added that swift response of the central bank through its monetary policy is already showing promising signs in curbing inflation increase, sending it to a downward trend.

“In the last two decades, the Bank of Albania has shown strong commitment to its legal mandate for price stability; it drafted a modern monetary policy framework, an effective policy instrument, as well as a carefully designed communication strategy,” central bank’s Deputy Governor Ahmetaj said.

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