TIRANA (Albania), November 2 (SeeNews) – The positive momentum of the Albanian economy has created adequate premises for the growth trend to continue in the period ahead, the governor of the Bank of Albania, Gent Sejko, said.
“The expansion of aggregate demand, the favourable financial environment, the improvement of balance sheets, and the restoration of confidence in the economy form a virtuous circle, which will support growth in the medium-term horizon,” Sejko said in a press release late on Thursday.
“Furthermore, the long series of structural reforms - whether already undertaken or being currently implemented - should pave the way for faster, sustainable and comprehensive economic growth,” he noted.
Sejko also pointed that exports increased, while the level of foreign direct investments remained high in the first half of 2018, contributing to the narrowing of the current account deficit and the stability of the external position
“According to official statistics, economic growth in Albania accelerated to 4.4% in the first half, showing a broad base in terms of aggregate demand components, and a diverse composition in terms of sectors contributing to growth,” Sejko noted.
The effects of economic growth have begun to be present in almost all economic and financial indicators, the governor said, adding that participation in the labour force and employment has increased, the unemployment rate decreased to 12.4% in the second quarter, and wages have started to trend upward.
“The NPL ratio dropped to 12.9% in the third quarter, almost halved from its peak recorded in the wake of the crisis,” Sejko said.
“Reflecting its performance and the recovery of economic activity, against the backdrop of low interest rates triggered by our accommodative monetary policy stance, the Albanian banking sector remains liquid, profitable, and well capitalised,” he concluded.