"War, little effect on the Albanian economy" - Themeli: Inflation may exceed the 3% target, but growth will be short-term
The conflict in the Middle East has a minimal and temporary impact on the Albanian economy. This was stated by the Director of Monetary Policy at the Bank of Albania, Erald Themeli, who emphasized that the Albanian economy has had a positive development trend, a trend that has been reflected in economic growth, employment growth in the non-agricultural private sector and wages at the same time.
"The impact on the Albanian economy will be moderate, in terms of price increases and inflation, but what is most important is that it will be temporary, meaning it will not leave long-term traces on the country's development trends, with minimal or marginal impacts on economic activity indicators," Themeli said.
Going forward, inflation may exceed the Bank of Albania's 3% target, but this increase will be short-term and controlled.
"Our projections for the future suggest that the inflation trend will continue to increase during the second half of 2026 and perhaps even in the first half of 2027, an increase that is expected to bring this indicator somewhat above the Bank of Albania's 3% target, but still an increase that will be much more limited and reduced compared to the inflation performance that we had after the crisis in Ukraine, after the increase in prices that followed the War in Ukraine ," he emphasized.
So, the Albanian economy is facing this unexpected situation from a relatively healthier position than we had in dealing with the previous shocks of the pandemic and the conflict in Ukraine.
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