Fullani: Economic growth at risk

“The Albanian Bank judges that the consumption slowdown because of the economic insecurity must turn into a spiral of negative affects of the economic indicators in the future. The economic slowdown has caused the domestic demand to drop, bringing a slowdown of the economic growth and of the family income in the future”, Fullani declared.

Although he stands to the prediction that the growth will remain positive even for 2012, the tones in the Supervision Council report were less optimistic than before.

“The economic activity will remain low due to the low consumption, the low investments and the lack of fiscal stimulus”, Fullani underlined.

The financial conditions will remain tight. The stimulus that the Bank of Albania has tried to give by decreasing the basic interest rate is not giving effects in the loan market. Being at this point, the Governor is asking the cooperation of banks.

“The Albanian Bank is waiting for a more complete effect in economy of the previous decisions. The banking system must be more flexible and have more attention towards the lucrative sectors of the business, which can invest with the unused capitals”, the governor added.

Bank of Albania says that the Albanian economy has the possibilities to create a stable network; hence it appeals the families to increase consumption, so that business can have a way to other investments.

The Supervisory Council decided to keep the interest rate unchanged to the historical minimum of 4%, by declaring that the inflation dangers are lower.

Top Channel