PRESS RELEASE
​​​​​​​Presentation by Mr Patrizio Pagano, Executive Director for Albania at the World Bank

On 18 September 2018, at the premises of the Bank of Albania, under the auspices of Governor Sejko, the World Bank Group Executive Director for Albania, Mr Patrizio Pagano, presented the study on: “The Productivity Slowdown and the Secular Stagnation Hypothesis”.

His presentation focuses on issues related to the impact of technology and human capital in boosting productivity growth. Professors and academics in the field of economy, representatives of commercial banks, as well as representatives of domestic and international financial institutions attended the presentation.

In his opening remarks, the Governor of the Bank of Albania, Mr Gent Sejko, thanked Mr Pagano for his presentation and the selection of the topic, which deals with one of the challenges experienced by the global economy after the financial crisis of 2008.

The Governor said that Mr Pagano co-authors a study in the book collection titled “International Macroeconomics in the Wake of the Global Financial Crisis” has been added to the existing vast body of economic literature that studies the challenges to various economies.

Productivity and its role on economic growth has always been a central theme at the focus of the attention at the Bank of Albania. He highlighted that the conclusion by Mr Pagano that “ ...the current low interest rates of productivity growth worldwide do not necessarily represent a new ‘normal’ of the economy” is a further encouragement for the success of reforms in Albania.

The Governor further elaborated this argument pointing out that the Albanian economy has been going through a restructuring process of its growth model. The level and speed of productivity expansion is directly connected with the level of education and qualification of the labour force, and that productivity is closely connected with the improvement of business management skills. Mr Sejko emphasised that all these reforms have been and are at the attention of the authorities.

In his presentation, Mr Pagano focuses on the phenomenon of the slowdown in the growth of advanced economies in the post-crisis period, and on the analysis of its driving factors. Recognizing the primary role of the slowdown of growth of productivity and labour contribution in this aspect, he highlights that this development is not something specific to the recent crisis, but a circumstance often repeated in the history of the global economy after strong episodes of crisis. In this context, M. Pagano explained his view that the role of new technologies has not yet been fully explored and that the potential for innovation worldwide will benefit from the global integration process. For this reason, he encouraged the continuation of further scientific research in this area.

At end of his presentation, Mr Patrizio Pagano responded to the questions of interested participants to further deepen the knowledge on this topic.

In conclusion, Governor Sejko thanked Mr Patrizio Pagano for his presentation, and the World Bank for the continuous support to Albania and cooperation between the two institutions.