Quarterly Review of the Albanian Economy (QI-2004)

Estimates of the first quarter of 2004 indicate positive developments of monetary indicators, which are deemed to support the Albanian economy growth by 6 per cent in 2004. Unlike the previous years, the lending to private sector of economy is forecasted to occupy the largest part of domestic economy demand for monetary assets. So, the balance of credit to economy is forecasted to grow by Lek 16.4 billion or 33.1 per cent during 2004. The increased lending to economy will sustain more and more the activity and economic growth during 2004 and onwards, by replacing the own equity and commercial credit as traditional financial sources of the Albanian firms. Furthermore, the continuous key interest rate cut by the Bank of Albania is assessed to increase the attraction for credit in Lek, as a valuable alternative for financing the Albanian business. Credit in Lek is forecasted to grow by Lek 4.2 billion during 2004, marking a rise of 39.4 per cent.