BREAKING NEWS

The USA warns of the "non-women" declaration of the Democratic Party, the Democrats risk sanctions, the American Embassy declares a "bombshell", people who associate with Sali Berisha and his family should be careful

The USA warns of the "non-women" declaration of the Democratic Party,
x
BREAKING NEWS

Alert for corrupt senior officials, the high-ranking US official lands in Tirana on June 20, Joe Biden extends "national emergency" to eradicate corruption in Albania, the document that sinks the "Berisha" family is revealed, asset seizure for corrupt ...

Alert for corrupt senior officials, the high-ranking US official lands in Tirana
x
BREAKING NEWS

Here is who is the well-known character of the world of crime who will sink Ilir Meta in SPAK, Kreshnik Spahiu reveals details from the wiretapping that, if taken seriously by the authorities, could open "Pandora's Box" in politics

Here is who is the well-known character of the world of crime who will sink Ilir
x
BREAKING NEWS

This is how the oligarch Klodian Allajbeu is "harvesting" money without criteria from the state budget due to theft and mismanagement, the American Hospital has zero investment in equipment and uses doctors from public hospitals, the government has no ...

This is how the oligarch Klodian Allajbeu is "harvesting" money
x
BREAKING NEWS

The question marks of how Belinda Balluku rose from a cleaner in Greece, to No. 2 in the government and minister of tenders in Albania, here are the hard details revealed by the Greek media about Rama's colleague, from the "party" with 50 million euros...

The question marks of how Belinda Balluku rose from a cleaner in Greece, to No.
x
BREAKING NEWS

Meta-Kryemadhi intercepted by BKH, here are the details from the file that prosecutor Sotir Kllapi is investigating, in the scanner properties and bank accounts, from the withdrawal of 20 thousand euros in 2008, building permits, villas in Lalzi Bay, t...

Meta-Kryemadhi intercepted by BKH, here are the details from the file that
x
BREAKING NEWS

The arrest warrant is ready for Ilir Meta, this is the last session of his questions in SPAK, here is the evidence that has sunk him, the lawyer Romeo Kara brings out the hard details

The arrest warrant is ready for Ilir Meta, this is the last session of his
x
BREAKING NEWS

The alliance between Sali Berisha and Ilir Meta has broken, Myslym Murrizi reveals what is happening within the opposition and shows the "recipe" that will overthrow Edi Rama from power

The alliance between Sali Berisha and Ilir Meta has broken, Myslym Murrizi
x

Politike

Minister Mete for VOA: Albania's economy stable, but affected by global financial circumstances

Minister Mete for VOA: Albania's economy stable, but affected by global

The Minister of Finance of Albania, Ervin Mete, says that the drop in consumption in Albania has come as a result of tight monetary policies, "not only in Albania, but also in the United States and other countries" and the increase in interests that affect the level of consumption.

Mete, told the Voice of America in an interview that the moderation of economic growth at 3.44 for the year is related to the broader circumstances of the global economy and emphasized that Albania's economy has been evaluated as one of the most stable in the region. Minister Mete, who is in Washington to participate in the spring meetings of the IMF and the World Bank, said that he will sign with the Bank a project to curb the pollution of the seas or along the rivers of Albania.

Ervin Mete:  As you know, the spring meetings and the annual meetings of the World Bank and the IMF are annual meetings and for the very importance that the World Bank and the International Monetary Fund have as important development partners and that have accompanied the reforms in Albania all these years. In these meetings, we have the opportunity to exchange views on current and future developments and on the projects that we will engage with the executive levels of the World Bank and the IMF, and we can focus either on projects that respond to current developments, or on reforms that are important to us.

With you, for example, during these days, we will sign with the Vice-President of the World Bank, Mrs. Basano, a project entitled "Care for Blue Seas", which practically foresees an intervention for water management polluted that can be spilled on the shores of the sea or along the rivers of Vjosa, so that it is well managed even within the framework of an increased tourism that we have, we can respond to these developments in a sustainable way. Just as we have had in-depth discussions for some time already, but these are also continuing regarding a reforming intervention of the pillars of social protection with a focus on addressing the ever more present needs of the protection of human capital, taking into account the demographic developments in country, where for us, especially the expertise of the World Bank is very important in this regard to bring the best practices so that we have the most sustainable interventions.

 Mr. Mete, INSTAT estimated that economic growth for 2023 is estimated to be 3.44 percent lower compared to the previous year. Even for the coming years, the forecasts are for the same levels. Are these numbers enough?

Ervin Mete:  Even in the evaluations of the Monetary Fund and the World Bank, we have been and have proven to be one of the most resistant economies in the region, given the confrontation with a series of successive crises, since the 2019 earthquake, the pandemic and then the Russia-Ukraine war which also brought the effects of inflation. We are estimated to have had cumulatively, that is, in the last five years, the highest growth in the region as a country. The good news is that not only have we managed to overcome the effects of these crises, but we have now not only returned to the macroeconomic parameters before the crisis period, but we have also exceeded these parameters. I emphasize here, for example, that the year 2023 ended with a level below 60 percent of the public debt, i.e. 59.2 percent in our estimates, for which even by international evaluators, rating agencies such as Standard and Poors, we once again since when the economic evaluations are done, we have received an "upgrade" from level B to level two B.

Yes, but what exactly do you attribute this decline to?

Ervin Mete:  It is not a decline. It is moderation of economic growth. Economic growth is evaluated year by year, taking into account the base of the previous year. So for example, if in 2020 there was a slowdown due to the pandemic, in 2021 the increase was 8.4 percent, one of the highest increases in the region and should be seen, that's why I said, in the context of both the base and the developments. We also discussed this issue with the IMF. These are estimates that are made from time to time. This is a first assessment, then another assessment is made again based on not only administrative data, but what is very important is that we, compared to the region and compared to EU countries, our trading partners, are considered we have solid growth. What does this mean to me? If our growth was 3.4 percent last year, the growth in the Eurozone, which is the main trading partner and with which we have the most important trade exchanges, was only 0.4 percent. So, we will have to take into account that we are a small, highly interconnected economy, and at the moment when we achieve, compared to our partners and the region, a significantly higher growth in comparative terms, we are considered to be in a situation of sustainable economic growth and there is a stable and positive development.

Let's go to some other data, from INSTAT, which prove that the final consumption of the population in the last 2-3 months of last year has decreased. How do you explain something like this considering that you stated that tourism has brought nearly 4 billion euros to the economy?

Ervin Mete:  First, comparisons should be made in slightly wider periods and should be seen in the context of other policies that are undertaken. So we are in a situation of tightening monetary policies, not only in Albania, but also in the United States and other countries, the central banks have tightened monetary policy, which means they have increased interest rates and one of the effects of the increase in interest rates is precisely the moderation of consumption, because the moderation of consumption is one of the mechanisms to keep inflation under control and the tightening of monetary policies, which in order to keep inflation under control also translate into moderation of consumption, have practically already given effect to us. Because in the first months of this year we have a reduced level of inflation, falling below the target set by the Bank of Albania, even earlier than the forecasts.

Because during these years, for many countries, including America, after the Russia-Ukraine war inflation has been the main challenge, now we are on target and we appreciate that from the discussions we had with the Bank of Albania, which is part of the delegation in The IMF and the World Bank, which does not need further steps in terms of monetary policy tightening, even in the not-so-distant future, the policy may move in the other direction. So to be specific to your question, the moderation of consumption is also an effect of these policies and the moment inflation comes under control, our expectation is that consumption will expand again.

In short, one of the concerns is in agriculture as it is one of the main sectors. What is being done in this regard?

Ervin Mete:  Agriculture has developed over a number of years. It is one of the important sectors for our economy, it requires a continuous reforming approach regarding not only the intervention of the state in that sector, i.e. the subsidy, because it is a sector that receives significant subsidies and we will continue the subsidy even during the review of budget in the middle of this year, but it is a sector that should also be seen in the reformation or restructuring of the way of doing business by aggregating the operators in this sector and bearing in mind that we must break away from manual agriculture, but switch to mechanized formats that can respond to the competitive pressures of the region or the EU where we are going and with which this sector must face.

 

Most read