expected to be more stable. respecting this picture has important implications, which i will address later in more details, for policymakers and economic agents. latest developments in global economy are characterised by continued economic growth in most developed countries and emerging economies. in developed countries, economic growth was lower as a result of measures taken to consolidate public finances and withdrawal of fiscal stimulus. on the other hand, emerging economies maintained higher growth rates, expanding their demand for raw materials and consumption goods, thus adding global inflation pressures. bis central bankers ’ speeches economic growth is expected to continue in 2011, but uncertainties remain high. global macroeconomic misbalancing, which appeared in high levels of trade deficit for some of the developed countries, may materialise in shocks to main currencies exchange rate and free trade exchanges worldwide. in addition, concerns over public debt and fiscal stability levels for some of the euro area countries continue to affect the sensitivity of financial markets and their tolerance to risk. regardless of latest growing tendencies, the balance of inflation pressures is considered to be in check for the current year as well, as a result of continued existence of non - utilised capacities. keeping free movement of people and capital at world levels, taking timely corrective measures on public debt situation, as well as creating effective mechanisms to prevent and buffer financial crisis effects at local level, will be important challenges for policymakers. on the other hand, monetary policy of main central banks will continue to be cautious, introducing an appropriate monetary stimulus into the economy in order to promote economic activity without affecting the actual and projected inflation levels. the albanian economy recorded a positive growth during the third quarter. according to data reported from instat, real annual growth of the gdp amounted to 4. 9 %, that is, higher than figures recorded during the first two quarters of the year. economic activity improvement relied mostly on trade, tourism and other services. the industry sector maintained the same contribution to the economic growth, while construction sector activities continued to shrink for the fourth consecutive quarter. developments in demand components follow the tendencies of the beginning of the year and are in line with our previous assessments. available data suggest that economic growth continued to be stimulated to a large extent by foreign demand ; meanwhile fiscal consolidation during the second half of the year predictably yielded a slowing effect to the economic activity. private consumption and investment remained low during the second half as well, despite improvement of financing conditions for the activity. private consumption continues to be subject to a hesitating approach by consumers

growing demand is considered to be below the potential of our economy even for 2011. this will condition declining inflation pressures of the domestic economy, expected to balance the effect of foreign and administered prices increase. bis central bankers ’ speeches