Monetary policy report 2011 Q3

Monetary Policy Report - 2011 Q3 Bank of Albania The Albanian economy had an overall positive performance during 2011, in spite of an unfavourable external environment. Domestic economic activity posted growth and some of Albania’s main macroeconomic and financial balances were controlled and further improved. Nevertheless, the challenges we have been faced with have had their impact on the Albanian economy. More specifically, over the past two years, economic growth has been affected by a hesitating behaviour of economic agents towards consumption and investment. Similarly, risk reassessment in financial markets has been accompanied by added prudence and higher risk premia in domestic and foreign credit markets. Furthermore, high prices of oil, food and other products in world markets have led to increased import prices for the Albanian economy and subsequent strong inflationary pressures during the first half of the year.