Monetary policy report 2011 Q2

The Albanian economy continued to grow during 2011 H1, although in the presence of added challenges generated by the internal and external economic environment. Tensions in global economies and financial markets, as well as increased prices of food and primary commodities, led to shrinkage of Albania’s economic activity. The first factor raised the uncertainty of economic agents as well as risk premiums in financial markets, while high inflation imported from world markets decelerated domestic demand and increased inflation expectations at home.