TIRANA, July  6  /ATA/ The year 2022 saw rising inflation, dictated by the increase in prices in the world markets after the military conflict in Ukraine. However, the Albanian economy showed a good resilience to this shock. The performance of inflation remained under control, the volume of economic activity, the level of employment and wages continued to grow, while the main indicators of financial stability remained solid.”

This is what the Governor of the Bank of Albania, Gent Sejko, stated on Thursday, emphasizing that, “price stability is one of the Central Bank’s priorities and the monetary policy had a significant impact on reducing the level of inflation.

According to him, BoA increased the base rate 5 times during the year, from the level of 0.5% at the beginning of the year, to the level of 2.75% at the end of it, with the aim of bringing inflation back to the target level in the medium term.

During the presentation of the Annual Report of BoA for 2022, in the plenary session of the Assembly, the Governor highlighted the current challenge that the Albanian economy is facing, as a result of the increase in prices in the world markets.

Sejko announced that, “BoA has exercised prudent control to prevent the accumulation of risks for the banking system, which is well capitalized and supports the economy with financing. Economic activity grew by an average of 4.2% during the first three quarters of 2022, after growing by 8.5% in 2021. Private consumption recorded the highest rate in ten years and provided the main support to economic growth. Investments continued to make a positive contribution during 2022 and the budget deficit was estimated at around 3.6% of GDP in 2022, from 4.5% a year ago.

The governor said that the average inflation of 2022 stood at the level of 6.7%, from 2.0% a year ago.

/r.e/sm/