Confidence has risen in both the household and corporate sectors in Sweden, and there are some signs that unemployment is falling. In the euro area, GDP increased in the second quarter, after six quarters in a row of falling GDP. Here, too, the confidence indicators are giving more positive signals. However, one must remember that the economies still have a long way to go to reach a normal status. GDP growth and inflation are at low levels in both Sweden and the euro area. And there are still large downside risks for economic developments. In the euro area, the weak public sector finances and problems in the banks’ balance sheets have scarcely improved in recent months. In the United States, the full effects of the sequester have not yet been realised, and there is also uncertainty over how the debt ceiling will be raised during the autumn. Growth rates in large emerging markets like China and India have fallen, albeit from very high levels. Previously, international capital has tended to move towards emerging markets as interest rates have been low in the more developed economies. However, as yields on US government bonds have been rising since the spring, the capital flows have changed direction. The outflow of capital means that exchange rates are weakening, which may improve the countries’ international competitiveness and contribute to maintaining their high level of economic activity.
Ardian Fullani: Overview of Albania’s latest monetary and economic developments and outlook Speech by Mr Ardian Fullani, Governor of the Bank of Albania, on the Monetary Policy Decision of the Bank of Albania’s Supervisory Council, Tirana, 30 April 2014. *  *  *  Today, on April 30, 2014, the Supervisory Council of the Bank of Albania considered and approved the Quarterly Monetary Policy Report. Given Albania’s latest monetary and economic developments and discussions on their outlook, the Supervisory Council of the Bank of Albania decided to keep the main interest rate unchanged, at 2.75%. The Council deems that inflationary pressures on the economy remain subdued. Under these circumstances, the monetary policy will continue to be stimulating in the period ahead, which will provide the necessary monetary conditions for compliance with our inflation target in the medium run. Let me now proceed with an overview of economic developments and key issues discussed at today’s meeting. Data for the first quarter of 2014 are generally in line with our previous assessments of the Albanian economy and financial situation. Weak aggregate demand continues to characterise the economy, further impacting almost all the economic and financial parameters in the country. In response to the weak aggregate demand, economic growth remains low and the Albanian economy continues to operate below its potential. The spare production capacities, both in the labour and capital markets, are reflected in low increase of employment and production costs, followed by weak inflationary pressures.