Monetary policy has been designed and implemented in line with midterm country’s macroeconomic program: with specific focus on price and financial stability Let me now briefly summarize what I believe are the latest most important developments, and outline our economic outlook. Economic growth After the significant electricity shortages at the end of 2005, it appears that traditional growth promoting industries like services (tourism) and construction are growing at a stable pace, contributing at a sustainable economic growth. Building upon these developments as well as other positive indicators, we expect the economy will grow at a solid rate of 5-5.5 percent. The main challenge remains ensuring sustainability of these growth rates, even higher in the long run. I believe that respective Albanian authorities have already identified the major priorities of these challenges which fully converge with Bank of Albania views. Just to remind you I would briefly summaries some of these priorities. Building new, preferably alternative, energy sources and improving the efficiency is top priority. In our view, sufficient and reliable energy supply remains a main concern to achieving economic growth. Providing a solution to this problem is a priority in the verge of increasing global demand and energy prices. Speeding up the privatization process of the remaining state assets is another important step forward. Special attention should be paid to structural reforms, particularly property rights and legal framework. In our opinion services, construction and in particular agriculture will remain driving forces of the GDP growth in the coming years.

Ardian Fullani: Economic outlook and important developments in Albania Speech by Mr Ardian Fullani, Governor of the Bank of Albania, at The Economist's Conference – First Business Roundtable with the Government of Albania: Identifying new business opportunities, Tirana, 14 September 2006. *  *  *  Honorable Chairman, Distinguished Participants, I am very pleased to be here today to share and discuss with you our views, future macroeconomic and financial market developments and outline our policy orientation. I was looking forward to converse to this forum. It is a great opportunity that such well known institution, focus their attention toward Albania. I would like to thank The Economist Conferences and express my deepest and highest appreciation for this venture. I am confident that members of all communities, foreign and domestic, gathered here today will leave this forum with a clear image on the economic reality and business opportunities Albania has to offer. Assisted by geopolitical conditions and actual state of affairs, although small at a glance, Albanian economy presents numerous financial and economic advantages and incentives. Recently Albanian economy has reached a commendable macroeconomic equilibrium, sustained by an economic growth of 5-6 percent, low inflation levels well contained within a 2-3 percent band, and continuously shrinking budget deficits. It is my pleasure to emphasize that the Bank of Albania and its policy has been rightfully credited and earned accolades by established foreign and domestic institutions for its notable role in such accomplishments.