INSTAT’s data reveal that Albania’ s economy grew 3.1% in 2011, supported mainly by the increased external demand for goods and services, whilst the domestic demand performed sluggishly. The economic growth was materialised into a better performance of services sector and individual branches of industry, while construction continues to suffer from sluggish demand and high inventory, especially of residential buildings. These developments reflect the internal restructuring of the economy and Albanian business, in response to changed aggregate demand composition and the need for enhancing the economic competitiveness in the region and world-wide. Consumer price inflation appeared volatile in 2011, due to upward prices in international markets and other supply-side shocks. However, the past year’s average annual inflation was 3.5%, i.e., in line with Bank of Albania’s target. The meeting of inflation target was driven by low inflationary pressures from the domestic economy, controlled monetary expansion and anchored inflationary expectations. Meeting inflation target amidst a challenging environment, full of unexpected developments, reflects the effectiveness and credibility of Bank of Albania’s monetary policy. Our unwavering commitment to maintaining price stability has led to anchoring inflationary expectations. Inflation anchoring has brought about direct benefits to the economy, in the form of mitigating economic fluctuations and reducing the intermediation cost of macroeconomic policies. BIS central bankers’ speeches  1  Year 2011 was featured by an increasing harmonization of macroeconomic policies. These policies stimulated the Albanian economy, but were prudent in terms of maintaining macroeconomic and financial stability in the country.

Ardian Fullani: Albania’s economic and financial developments in 2011 Speech by Mr Ardian Fullani, Governor of the Bank of Albania, at the presentation of the Bank of Albania’s Annual Report 2011 to the Parliamentary Committee on Economy and Finance, Tirana, 30 April 2012. *  *  *  Honourable Chair, Distinguished Members of the Committee, Ladies and Gentlemen, *** Before starting my speech, I would appreciate your kind understanding about the fact that the period after the submission of the Report has enriched the 2011’s economic data inventory with new information. It is understandable why this information is not incorporated into the submitted material. In the following, I will address overall economic developments based on the latest information, trying to also identify the differences between the latest data and the version available to you. *** Our annual meeting on introducing Bank of Albania’s Annual Report remains a special pleasure for me. More than a legal obligation, the Bank of Albania considers this Report as an important step to enhance institutional transparency, foster accountability and intensify the dialogue with all economic policy-makers and stakeholders. Let me now start with an overview of main conclusions of the Report. The economic activity recorded positive growth rates, while the macroeconomic balances remained stable or were further strengthened. It should be emphasized that this activity was conducted against the backdrop of deteriorating global economic and financial situation in 2011.