BoA increases actual potential of economic growth to 3.5%
The Bank of Albania has reassessed the potential of growth of the Albanian economy.
According to an analysis of the monetary policy department at the Central Bank, this potential is now estimated at 3.5%, from 3.2% that was the previous limit.
The higher growth potential is associated with the accumulation of new physical capital in recent years.
As it is known, from 2014 onwards, the growth of the Albanian economy has been mainly driven by the expansion of investments.
Major roles was held by some major foreign investment projects that have led to a growing equity capital growth for several years.
This is the main factor that has led to a review of the potential for growth of the Albanian economy.
The new assessment of potential growth has also led to a change in projections for economic growth and return of inflation to the BoA’s target.
A higher growth potential means that the economy will take longer to achieve this potential growth.
According to the Bank of Albania, this is expected to take place in 2019.
The Albanian economy is expected to grow by about 4% this year, agrowth higher than the current potential.
This is because the growth of previous years has been significantly lower than the capacity of the economy, and in order to achieve potential growth, the real growth is expected to be higher in the next two years.
SCAN
*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.