of weak demand - induced inflationary pressures. developments in the real sector of the economy conditioned the controlled price rise of domestic products. these tendencies have been reflected in the downward trend of core inflation and low non - traded inflation of the consumer price index basket. consumer price performance continued to reflect the low pressures from other cost elements. in particular, import prices were low and given the relative exchange - rate stability, they transmitted low pressures from imported inflation. following the economic contraction in the first quarter, albanian economy fell by 2. 0 % y - o - y, in the second quarter. economic activity growth was generated by agriculture, industry sectors and some branches of the services sector, while the construction sector fell sharply. bis central bankers ’ speeches from the viewpoint of aggregate demand, the second quarter ’ s economic growth was mostly supported by the foreign demand, while the domestic demand remained sluggish. consumer spending, though higher than in the first quarter, did not return to past year ’ s rates of increase. this component of the domestic demand remained influenced by the perceived uncertainty, lacked dynamisms in the labour market and slowed available income. confronted with a low ultimate demand for their products and in the presence of spare capacities and relatively tight lending terms, private investments also remained low. in particular, during the first half of the year, the low private investment level reflected households ’ low demand for housing. public spending and fiscal stimulus were also weak, reflecting the consolidating fiscal policy and observing the fiscal restrictions required by law. fiscal consolidation, which is based mostly on reduced expenditure, is illustrated through the downward trend of budget deficit over the period. the budget deficit resulted about all 25. 7 billion during the first three quarters of the year, down by about 19 %, y - o - y. until september, the realised expenditures were about 0. 2 % lower than a year earlier, while the budget income increased 2. 3 %. the data on developments in the external sector of the economy show albania ’ s significantly improved external position. the value of exports increased 6. 7 %, y - o - y, in the first quarter, reflecting the moderation in the foreign demand and performance of global market prices. over the period, imports contracted by 0. 9 %, y - o - y. these developments led to an annual contraction of trade deficit by 5. 4 % until august, positively influencing the aggregate demand growth. also, the sharply decreased current account deficit in the second quarter

and you destroy the economy. this is not some kind of a flower power, tree hugging exercise. this is core economics. even if i couldn't care less about the planet, i would say exactly the same thing. " in other words : financial institutions need to speed up their own transition to a tri - dimensional decision framework for investment and lending decisions. a framework that is not defined by the traditional risks and returns, but by risk, return and impact. 1 / 4 bis - central bankers'speeches what does that entail? the world bank defines impact investing as an approach that aims to contribute to achieving measurable positive social and environmental impacts. an approach that looks to the future instead of to the past. impact investing and lending creates a significant opportunity to mobilise capital into investments that target measurable positive social, economic, or environmental impact alongside financial returns. i consider it important that financial institutions start making conscious decisions to invest in, or lend to, counterparties that have the capacity to generate measurable positive impact, in whatever form. i know, adopting this impact framework can be scary : financial institutions have a tendency towards herd behaviour and feel a substantial'first - mover disadvantage '. but if we move towards this framework, this mindset, together, the impact will not only be bigger, but we will also find safety in numbers. and let's be honest : it is not only our own decision to make. it is what investors, clients and partners demand. maybe we tend to see them as the pawns, whereas profit is king in the financial sector. however, as anatoly karpov said : " pawns not only create the sketch for the whole painting, they are also the soil, the foundation of any position. " so, if we base our position on the esg mindset, if we incorporate impact investments and loans into our portfolios, we will not only create proper and prudent risk management, but we will also paint a sustainable future. how can financial institutions make this work? by making choices. first choice : tailoring the operational primary processes – like investment processes and customer acceptance, credit judgement and revision – towards impact investments. that means that impact needs to be part of the parameters for decisions about investments, next to risk and return. that can be scary ; it means daring to move away from the broad market benchmark and choosing a smaller portfolio of impact - oriented companies. and we have to make clear what