Politika ekonomike dhe monetare

The main objective of the monetary policy of the Bank of Albania is to achieve and maintain price stability, sustain macroeconomic balance, lower premium risks, ensure sustainable economic growth and long-term welfare, and support the stability of the financial system.

 

Achieving and maintaining price stability implies pursuing low but positive inflation rates and preserving them for relatively long periods of time. In quantitative terms, the Bank of Albania aimed to keep the consumer price inflation rate at 3.0% during 2012-2014, with a tolerance band of ± 1 percentage point around this central numerical figure. This quantitative inflation target of

3.0% supports the EU integration process, enabling a reasonable time span for the real and nominal convergence of the Albanian economy with the EU.

 

Economic Policy

 

The government’s vision for the years ahead is a strong, sustained and comprehensive growth of the Albania economy and successful European and Euro-Atlantic integration, including:

 

  • Maintain average economic growth above 6% per year with a rising trend to 7%;
  • Preserve macroeconomic stability through further fiscal consolidation, reduction of the public debt, improvement of the current balance and development of a fiscal policy in synergy with the monetary policy;
  • Reduce tax rate and keep public revenue at around 27-28% of GDP, in parallel to reduction of informality and good management of the fiscal system;
  • Create a favourable business climate for dynamic development of private enterprises and for attracting more foreign investments;
  • Enhance fiscal decentralisation through further decentralisation of joint functions.

 

To achieve this vision, the Government is committed to deeply reforming the public finance planning by implementing the Integrated Planning System which will ensure that the annual budget planning is harmonised with the Medium Term Budget Programme, the National Strategy on Development and Integration, the Stabilisation and Association process, as well as with other priority strategies and policies.