Although Albania has been “a net importer” of global developments, its economy has shown high level of resistance and absorption. In the third quarter the present year, the Albanian economy continued to maintain its previous course. The available data on the first nine-month period show that the economic growth has been in line with the projections. Macroeconomic balances remain stable and the banking system continues to be sound. Economic growth at home has maintained its upward tendency. Services and trade sector in particular have provided the main contribution to the economic growth. CPI inflation continued to fall in October to 2.7 percent. Developments in core inflation indicate that the macroeconomic balances at home and the monetary conditions have been adequate to ensure an inflation rate close to the Bank of Albania target. The achieved stability has been also prompted by the inflationary expectations of economic agents which have been anchored at around 3 percent. These developments attest to the fact that the central bank’s measures have been effective in terms of containing the inflationary pressures. The fiscal policy pursued during the entire year 2008 has observed the targets set in the Medium-term Budget Programme for 2008-2010; consequently, it has not yielded any repressions in economy and performance of prices. The Albanian banking system continues to operate under optimal parameters, in line with the standards of prudent banking supervision. The latest data indicate that the domino effect induced by the developments in the international financial market has been handled with satisfactorily.
Detecting the risks we may plausibly be faced with is not enough. I think our top priority is the design and implementation of preventive and remedial measures, which would reduce the materialization level of these risks. When I say “our”, I mean the state with its entirety of institutions and mechanisms. Our main challenge – involving the central bank, the banking system, the government, other decision-making and executive authorities, business community and the public in general – is to maintain the aggregate demand, the production potentials and the financial resources in economy at unchanged levels. These are our top national priorities. Put differently: keep the real economy going; make sure economic growth does not shrink; ensure your business maintains the same rates and that employment grows instead of reducing. This, dear participants, is may otherwise be referred to as ensuring the stability of the country’s economic growth. On behalf of the institution I represent, I would like to assure you that the Bank of Albania – being one of the main economic and financial decision-making authorities at home – remains entirely committed in this context. The times we are going through require all the development strategies, economic policies, measures and rules to undergo a strict cost/benefit analysis. In this context, although the crisis is not outlined yet, we have already drawn the first lessons from it. Public and private authorities need to consider these lectures as future opportunities. Mistakes can teach us how to better serve the future.