BoA forecasts economic growth in 2009 as half the rate of 2008

TIRANA, March 30–Albania’s gross domestic product (GDP) is expected to grow at half of last year’s rate of a 7.2 percent, BoA’s deputy governor said on Monday.
“Economic growth this year will be positive but almost half last year’s rate,” Fatos Ibrahimi said in a statement.
Albania has projected that its economy will grow by 6.3 percent in 2009.
The International Monetary Fund, whose mission to Albania ended in January, cut to 3.5-4.0 percent from 5.0 percent its forecast for economic growth in the country this year. In February the Fund said it may lower the forecast further.
The main drivers of the growth in 2008 were the construction sector, backed by foreign investments and the agricultural sector, which grew fast but starting from a very low base at the end of 2007.
Ibrahimi also said that inflation in the country over a certain period of this year could be lower than targeted.
“Inflation may temporally fall below the bank’s target band but we expect that during most of the year it will be within the band,” Ibrahimi said.
Albania targets an average annual inflation rate of 3.0 percent, or an inflation range of 2.0-4.0 percent, in 2009, the same as in the last five years.