GDP Increased by 8.5% in 2021; BoA Governor
The Governor of the Bank of Albania, Gent Sejko, referring to INSTAT figures, said that Gross Domestic Product increased by 8.5% in 2021.
Sejko said that the Supervisory Council has decided not to change its position on monetary policy. According to him, the conflict in Ukraine and the sanctions imposed on Russia brought new disruptions in global chains and increased uncertainty about the future.
"The Supervisory Council decided not to change the monetary policy stance. The new information obtained in the analysis showed that inflationary pressures in world markets turned out to be stronger than our expectations at the beginning of the year.
The conflict in Ukraine and the sanctions imposed on Russia brought new disruptions to global chains and increased uncertainty about the future. They were followed by rising prices in world markets and aggressive moves by central banks towards tightening monetary policy.
Inflation rose to an average of 4.4%. Inflation growth was rapid in March where the figure reached 5.7%. The rise in inflation was triggered by supply shocks coming from rising food and oil prices.
In parallel with these, the upward trend of inflation has reflected the economic recovery as well as the upward trend of inflation expectations.
According to INSTAT GDP grew by 8.5% during 2021 exceeding the levels recorded before the earthquake and pandemic. The increase in employment led to a decrease to 11.4% of the unemployment rate," said Sejko.