BoA: New growth agenda needed

TIRANA, June 22 – Central Bank governor Ardian Fullani has reiterated the need for a new growth agenda in the aftermath of the global financial crisis. Speaking at a seminar on current economic challenges and regional cooperation in SEE this week, Fullani said “the last global crisis evidenced that economic models, which are mainly based on debt and domestic demand, are not stable.” According to him, increasing competitiveness and productivity of economies in the region remains the most immediate and long-term challenge. The regional seminar was organized in cooperation with Oxford University under a deal the Bank of Albania has signed to conduct joint research on the challenges Albania and the region face, as well as policies for long-term growth. Meanwhile, Finance Minister Ridvan Bode emphasized the need to orient the Albanian economy toward exports and increasing their competitiveness. According to him, Albania and regional economies must coordinate their efforts to minimize negative effects from tough competition. The Minister said the Albanian economy would benefit from increasing mineral exports and further development of the tourism industry. The World Bank has recently suggested that Albania can sustain growth in the future by implementing a new generation of policies and reforms focused mainly on education and skills, ICT development, the energy sector, and better governance and rule of law. “Reaching the upper middle income country status in a relatively short time is a major achievement. It also poses new challenges. Under this new status Albania has to compete with low-wage poorer countries as well as with rich country innovators,” said Kseniya Lvovsky, the World Bank Country Manager for Albania.