This increase is believed to have been adequate to supply the demand of the economy for money under the conditions of an economic growth of 6 percent and of an inflation rate within the two-to-four percent targeted range. Money supply and the closest money aggregate (M1) have known faster growth rates during 2004 compared to year 2003. This is a consequence of a rising demand of the economy for monetary assets, reflected even in the invigoration process of lending to the economy throughout the year. Also, the controlled inflation level has rendered possible the maintenance of a real interest rate in positive terms, despite the ongoing reduction of nominal interest rates. The real positive interest rate has maintained the tendency of households to deposit their savings in the banking system, bringing about further reductions of the relative level of currency outside banks that circulates in the economy. The rising demand for monetary assets has been shaped mainly as the demand for monetary balances in Lek. The demand for Lek has been particularly evident in the summer time, being partially supplied even by means of liquidity injection through the Bank of Albania intermediations in the foreign exchange market. The annual growth rate of deposits in Lek was 12.9 percent, being a satisfactory growth compared to the average historical rate. It was adequate to cover Government demand for the financing of deficit and the economy demand for credits in Lek. Meanwhile, deposits in foreign currency grew by 17.1 percent during 2004.
Some indicators of the economy over the years  Real growth of GDP (in %)1 PBB (with current prices, in millions of Lek2) PBB (with current prices, in millions of USD) PBB (in USD per capita)3 Number of the employed (in thousands) Unemployment rate (in %)  1  1999  2000  2001  2002  2003  2004  8.9  7.7  6.5  4.7  6.0  6.0  488611  530900  588700  630000  695100  780100  3548.4  3694.5  4102.4  4496.8  5702.2  7,581  1052.0  1086.3  1329.0  1460.0  1833.5  2,434  1081.0  1068.0  1065.0  921.0  928.0  917.0  18.0  16.9  14.6  15.8  15.0  14.6  Data on GDP and its real growth for the period 1999-2000 are originated from INSTAT. For the rest data are estimates from Ministry of Finance, IMF and also data from Bank of Albania. 2  The table is being constructed based on the reviewed nominal GDP. 3  Nominal GDP converted at the average rate of the period.