From the perspective of underpinning policies, economic activity expanded, favoured by the following: The accommodative monetary policy and the favourable financing conditions, in both domestic and foreign markets; The fiscal consolidation, which has reduced the impact of the public sector on the domestic financial markets; and The structural reforms programme, which, irrespective of the short-term costs, have started to yield initial results. Economic growth has contributed to the overall improvement of Albania’s economic and financial balances. In line with our previous statements, the following is notable: Inflation edged up slightly, despite the containing effect of the sharp appreciation of the exchange rate, suggesting that the improvement of the cyclical position of the economy is beginning to be reflected in higher wages and other production costs; Albania’s external position has improved, reflected in the narrowing of the current account deficit;  Budget deficit remains low and public debt has trended down; Lastly, Albania’s financial system is stable. The Albanian banking sector shows stable or improving capital, liquidity and profitability indicators. Our analyses and stress tests suggest that the sector is resilient to potential stressful situations, thus guaranteeing its ability to withstand shocks. 1/3  BIS central bankers' speeches  Such analyses show that the foundations of the country’s development remain relatively solid. The analysis is reflected also in our projections. In the baseline scenario, these projections suggest that economic growth will continue in the medium-term horizon, production capacities will be utilised in fuller terms, and inflation will converge to the central bank target by 2020.
Sim Kee Boon helped to chart Singapore’s economic development through the turbulent 1970s, when stagflation and oil price shocks shook the world’s economies. We are living in even more interesting times today. 27. The Institute has gathered an impressive collection of talent here today. I wish you fruitful discussions. Thank you. 4  BIS central bankers’ speeches