As a result, the economic growth of 2019 resulted in the level of 2.2%, down from the level of 4.1% recorded in the previous year. The shocks we suffered slowed down the growth rate, but did not divert the Albanian economy from the positive development trend. This performance was reflected in the reduction of the unemployment rate, in the increase of employment and wages, as well as in the reduction of the foreign debt and the public debt of the country. In parallel, the main indicators of the health of the banking sector remained at satisfactory levels. The average inflation of 2019 resulted in the level of 1.4%. The performance still below the inflation target, required the maintenance of the stimulative direction of monetary policy during 2019. For this reason, the Bank of Albania kept the key interest rate unchanged at 1.0%, oriented the market on maintaining the easing direction of monetary policy in medium-term horizon, as well as supplied banks with the necessary liquidity. In response to our monetary policy, financial conditions were stimulating to increase aggregate demand and appropriate for returning inflation to target. The monetary stimulus brought about the reduction of the credit price and stimulated the growth of lending. Under these circumstances, private sector lending experienced a relatively rapid growth and showed a better distribution. Also, the monetary stimulus reduced the cost of debt service for businesses and households, as well as created the premises for a more stable exchange rate.
In addition to supporting price stability, the Bank of Albania has also paid attention to the promotion of financial stability, through the supervision and careful regulation of the banking 1/3  BIS central bankers' speeches  sector, as well as through the coordination of work with other supervisory authorities of the financial sector. 2. Banking supervision and financial stability The Albanian banking sector continues to remain financially sound and has shown increasing dynamism. This sector has been profitable during 2019, while its liquidity and capitalization indicators are above our regulatory requirements. Also, resistance testing exercises show that the banking sector exposure to systemic risks is controlled and that the banking sector’s ability to withstand risks is strong. Below I will briefly list some of the main directions of our work to strengthen banking supervision and to support financial stability. First, the Bank of Albania successfully administered the banking sector consolidation process. This process reshaped the domestic banking market, bringing in new and motivated actors, as well as increasing domestic capital. Second, the Bank of Albania fulfilled all its obligations under the national plan for the reduction of non-performing loans. Thanks to measures taken over the years, the nonperforming loan ratio fell from a maximum of almost 25% in 2014 to 8.4% at the end of 2019. Third, the Bank of Albania worked to meet the recommendations of the CoE Committee of Experts on the Evaluation of Measures against Money Laundering and Terrorist Financing (MONEYVAL).