Energy, oil prices may affect the country’s economy, says BoA

TIRANA, Nov. 5 – The central Bank of Albania has kept the interest rate unchanged at six percent, saying that the country’s economy remained strong during the first nine months of the year.
The bank’s governor, Ardian Fullani, said that the Gross Domestic Product’s growth this year was expected to be six percent as planned, despite the tendency of inflation to rise in part due to the energy crisis. The annual average inflation in September was 2.7 percent, which is close to the three percent norm set by the bank. The current deficit is ten percent and the commercial deficit is 27 percent for the first half this year.
Credit for businesses increased 50 percent in August, contributing to 16 percent of the GDP.
Fullani said that the increase of the wheat prices in Albania as well as throughout the world, also was reflected in the country’s rise on bread prices since July. The energy crisis remains the top issue of concern due to the drought and increase of imported energy. Expenses on energy have had their negative effect on the cost of production of all Albanian products. Fullani was pessimistic of a short-term or middle-term solution to the crisis.
Industrial production saw a regular increase for the fourth quarter with a 20 percent annual rise.