policy. the pace of recovery of these two indicators will determine the short and medium - term dynamics of the country ’ s development. data on public sector performance show a consolidating fiscal policy over the first five months of the year. this policy materialised in a budget deficit of about 68 % lower than the previous year. the tightening fiscal policy is evident both on the revenue and expenditure side. fiscal revenues increased 9. 0 % in annual terms, while budget expenditures were 7. 5 % lower than the previous year. our monetary policy easing has also taken into account this feature of fiscal policy that the bank of albania has urged and supported. however, the bank of albania would like to bring to attention the need for a more uniform distribution of expenditures and budget deficit over the year, to enhance their effectiveness and avoid the fluctuations that their excessive concentration may cause to the country ’ s economic and financial indicators. bis central bankers ’ speeches the improved foreign demand and positive dynamic of some sectors of the economy were reflected in an increase in annual exports by 10. 3 % in april. the detailed analysis of trade data reveals encouraging signals about re - exporting and agricultural activities. trade deficit, however, expanded 1. 8 % in april, due to the simultaneous increase of imports by 6. 0 %. in particular, the energy situation continues to burden the trade balance of the country due to high levels of energy imports. structural improvements to the economy and a more favourable external environment would pave the way for a faster growth of albanian exports. the bank of albania considers this channel as the most appropriate tool to support the country ’ s sustainable growth in the medium and long term. projections for low annual inflation rates, against the backdrop of below - potential economic growth, have dictated the pursuit of an easing monetary policy by the bank of albania. at the end of may, monetary stimulus was strengthened by a further cut in the key interest rate. available information on financial markets shows that this cut has been fully transmitted to the interbank and government securities markets. it was also reflected in lower financing costs of the banking system, creating, in turn, premises for the transmission of stimulus to the lending interest rates and further to the economy. the bank of albania calls on the banking system to comply with this important link of the transmission mechanism. despite the easing of monetary conditions, the economy ’ s demand for financial assets remains weak. monetary indicators for april show a slower annual growth of money supply, to 0. 7 %. its

another distinguished academic and internationally renowned economist, prof. stanley fischer, will be delivering the third brahamananda memorial lecture today. prof. fischer is so well known that it will be presumptuous on my part to introduce him. but i will do so nevertheless if only to pay homage to a tradition. prof. fischer, who is presently governor of the bank of israel, has a formidable reputation as an academic, as a teacher, as an economic policy adviser and administrator, and in his current position, as an economic policy practitioner. his academic credentials are impeccable – phd from the massachusetts institute of technology ( mit ), assistant professor of economics at the university of chicago and professor of economics at mit. you would no doubt have noted that with this blend, prof. fischer will make an ideal referee bis central bankers ’ speeches for the perennial feud between the salt - water and fresh - water economists of the american school. prof. fischer served in several top level institutions in senior positions. he was vice president, development economics and chief economist at the world bank. after two years of that, he made a momentous career change by walking across the 19th street in downtown washington to become the first deputy managing director of the international monetary fund ( imf ), in which position he served for seven years from 1994 to 2001. at the end of 2001, prof. fischer joined the influential washington - based financial advisory body, the group of thirty. at least two generations of students of economics, not just in the us, but around the world, have learnt their macroeconomics from the seminal text book “ macroeconomics ” that stan co - authored with late rudi dornbusch. he wrote several other books, all noted for their original thinking, intellectual insights and clarity of argumentation. stan fischer assumed office as the governor of the bank of israel in may 2005. he was associated with the bank of israel in the past, having served as an american government adviser to israel ’ s economic stabilization program in 1985. on may 2, 2010, he was sworn in for a second term at which time the prime minister of israel said of stan fischer, “ this is a man on whom there is no disagreement in the whole world that he does excellent work ”. prof. fischer has made a distinct mark in academic research and analysis. his principal contribution has been on the role of activist policy in stabilizing an economy, and the effects of lags and uncertainty on the effectiveness of