Albania Cuts Interest Rates to Stimulate Economy

Albania Central Bank Governor Ardian Fullani

Bank governor Ardian Fullani said the cut in interest rates was aimed at boosting economic growth.

“This decision provides the necessary condition to keep inflation at bay and will raise... economic activity in the country,” he added.

According to the governor, Albania’s economy has in recent months seen a reduction in exports and a widening of the trade deficit, as the economic crisis lowers consumption and investments.   

The International Monetary Fund, IMF, downgraded Albania's GDP growth forecast on Wednesday from 3.4 to 2.5 per cent amid concerns about the impact of the eurozone crisis and sluggish demand for goods and services.

Albania’s economy is particularly exposed to the financial troubles in Greece and Italy, the country’s main trading partners, which also host large Albanian emigrant communities.