BMI/Fitch: Albanian economy slated to accelerate, interest rates to remain low

The constant contracting in private sector lending and projections which show a benign inflation in the medium term suggest that the Bank of Albania will continue to keep its monetary policy on the accommodating side over the next 18 months, writes BMI Research, part of the agency Fitch, in its latest report for the country.

Interest rates will continue to remain low, the agency says, although figures suggest an improvement in the economy.

This is claim that the agency supports with figures as well.

First, it has revised the economic growth of the country.

In the previous report, they projected an economic growth rate of only 3.3% for this year, while now they are talking for a growth at about 3.6%.

The projections for next year, meanwhile, remain unchanged, at 3.3%.

A significant revision was done for the projections of the consumer price performance, at 2% during both this year and the next one.

Among other things, BMI in this report also stresses the optimism that has emerged as a result of the justice reform resulting from the victory of the Socialist Party in the July elections.

But it adds that there are other factors that do not with for an implemented reform, causing the agency to be skeptical about Albania’s membership in the European Union within the next decade.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.