top of page

Albania economics highlights (week 27/2022)

Updated: Aug 21, 2022

Central Bank of Albania Monetary Policy decisions on July 6th

Based on its revised and updated projections, Bank of Albania suggest inflation in Albania will continue to remain elevated during 2022.

Against this backdrop, the Supervisory Council deems that an accelerating inflation rate, is the main risk jeopardizing a sustained and long-term economic growth of Albania.


The Supervisory Council of the Bank of Albania decided to increase base and other interest rates as follows:

  • base interest rate to 1.25% from 1.0%

  • interest rate for the overnight deposit facility to 0.25% from 0.1%

  • interest rate for the overnight lending facility to 2.25% from 1.9%.

Key areas mentioned during the press conference on monetary policy :


Higher demand for goods and services was reflected into a further expansion of employment and wages in the first quarter, providing an additional factor to the accelerating inflation rate. According to the official data, unemployment fell to 11.3% in 2022 Q1, while wages in the private sector increased by 10.5%.


The financial market in Albania continues to be characterized by contained risk premia, ample liquidity, a stable exchange rate and expanding credit. Annual credit growth to the private sector has accelerated further to 13.8% in May.


BoA baseline scenario projections indicate that the inflation rate will peak in the third quarter of the year, close to the current level, and will start decreasing progressively thereafter. Inflation is expected to return to target in the first half of 2024. Source:Bank of Albania


Annual inflation rate June 2022


The annual inflation rate in Albania rose to 7.4% in June from 6.7% in May and 6.2% in April. The monthly change of consumer price index is -0.1 %.

The annual growth rate in June was mostly influenced from the change in prices of the “Food and non-alcoholic beverage” group (+4.38 p.p.), followed by the “Transport” group (+1.53 p.p.). Source: INSTAT



GDP annual growth in Q1 2022

Albania's gross domestic product expanded 5.97 percent year-on-year in the first quarter of 2022, following a 5.5 percent gain in Q4 2021. The sectors that contributed positively are: Construction by +1.95 percentage points; Trade, Transport, Accommodation and Food Services by +1.55 percentage points; Real estate activity by +0.91 percentage points; Professional services and Administrative services by +0.66 percentage points; Financial and insurance services by +0.26 percentage points; Industry, Electricity and Water by +0.24 percentage points; Information and Communication +0.03 percentage points; Agriculture, Forestry and Fishing by +0.01 percentage points.

The sectors with negative contribution are: arts, entertainment and recreation services, other services by -0.35 percentage points; public administration, education and Health by -0.18 percentage points. Net taxes contributed positively by +0.89 percentage points. Exports rose more than imports in Q1 2022 (25.25% vs 17.62%). Source: INSTAT


GDP annual growth rates in Q1 2022 in the Western Balkans:

Sources: Statistical Office of Montenegro; INSTAT; Kosovo Agency of Statistics; Statistical Office of the Republic of Serbia; State Statistical Office of the Republic of Macedonia



319 views0 comments

Recent Posts

See All

Risk Disclosure: We bring updates and news from financial, regulatory or political events that impact our markets and economies. We do not provide information for investors to base their decision making in investments or trading. Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of financial loss. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Proinfinit Consulting would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and information on the website are not necessarily provided by any market or exchange, but may be provided by analysts, academics and professionals in the field. Proinfinit Consulting and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your reliance on those data or the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Proinfinit Consulting and/or the data or information  provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.

 

bottom of page