A recovery is expected towards the end of the year, albeit a tentative one, given that the deterioration in the employment outlook, the erosion of purchasing power and the fall in property prices look set to weigh on consumer sentiment and income. Europe represents the second pole in the global economy. Although the continent enjoyed strong growth during the first quarter of 2008, the remainder of the year should see a slowdown. A number of factors will contribute to this loss of momentum. First, the strong euro and the sharp downturn in the US economy are dampening exports. The sub-prime crisis has led to a tightening of credit conditions, while consumer confidence has deteriorated. This will have a knock-on effect on consumer spending. However, the slowdown in Europe will be much less pronounced than in the US, although the subsequent pick-up in economic activity will also probably be gradual. BIS Review 80/2008  1  The Asian economies, which constitute the third major hub, continue to exhibit strong growth as a whole, since they remain virtually unaffected by the slowdown in the US economy. Nevertheless, they have been hit by rising commodity and food prices, which are seriously reducing incomes. Regional variations aside, it would therefore be reasonable to conclude that the global economy, as a whole, is not witnessing a significant slowdown at present – as opposed to one of the rather more alarming scenarios that were only recently being mooted.
Dear banking system executives, As I mentioned above, this is a good moment, while the future still bears some questions. The economy is not exempt from this overall consideration. I take the opportunity to bring to your attention the fact that the institution each of you represents has a certain role to play in the everyday economic and financial life of the country. Now that we know the already-announced objectives of the Government of Albania for 2018, it is understandable that 2018 is a rather challenging year to further boost economic recovery and strengthen the financial stability of Albania. From this perspective, I would like to affirm that, like in 2017, in 2018 the Bank of Albania will continue to focus on:  guaranteeing a stable economic environment, keeping inflation rates in check, and having liquid markets with low volatility. The monetary policy will aim at an adequate supply, in terms of both quantity and price. The final monetary policy objective will be unchangeable, while the accommodative stance implemented in the past years will be present during 2018.  boosting credit recovery in Albania. We believe that the further boosting of the economy provides a friendly environment for lending to the economy. In addition, we will continue to insist in the implementation of the joint programme for the reduction of non-performing loans. In this light, we expect the banking system to be proactive in lending to the economy.