gent sejko : achievements in 2022 and setting the milestones for 2023 address by mr gent sejko, governor of the bank of albania, at the year - end event organised by the albanian association of banks, tirana, 15 december 2022. * * * honourable aab chairman, dear ladies and gentlemen, as every year, it is a pleasure for me to joint this special meeting with banking industry, sharing our achievements and efforts made throughout the past year, the most meaningful experiences, and setting the milestones for 2023. let me first focus on the overall performance of the albanian economy. the sharp upsurge of prices and inflation in international markets in the wake of russia's war against ukraine shaped the performance of the albanian economy over the course of 2022. this supply - side shock caused another steep challenge for the albanian economy, driving to the need for a review of public economic policies and business - plans in both private sector and banking industry. in this context, i would like to highlight that the albanian economy was in sound positions when this shock hit, following the rapid rebound from the pandemic - related shocks in 2021. also, the monetary and financial stability was consolidated. the sound financial balance sheets of albania, the strengthened confidence in banking system, and the reduced risk premia reflect this stability. also, the latter is anchored in the positive experience that we both, public institutions and you, as financial sector, have gained in tackling such shocks. in addition, the monetary policy normalisation we have embarked on has established the premises for controlling inflation and safeguarding the economic and financial stability of albania. in this view, i would like to welcome the positive role played by the banking industry over 2022, by maintaining a positive approach towards lending to private sector and taking the necessary measures to manage added risks in your balance sheets. i am confident that these measures, and others we may take in this regard, will pave the way for a rapid return to normality. though risks remain present, our projections suggest inflation will return to target within the first half of 2024 and the albanian economy will continue to maintain a positive growth pace throughout this period. as important actors in the economic and financial life of albania, i would like to reemphasise that our decision making should be forward - looking, decisive and courageous. albania has a solid economic growth prospects in both medium and long term. they have enabled the continuous expansion of economy and of

deflation is a manifestation of the fundamental problem of the long - term downtrend in the growth potential of the economy. i would now like to discuss efforts in three areas that i think are particularly important for raising the growth potential of japan ’ s economy. the first concerns effort to tackle rapid population aging. based on current demographic trends, the pace of decline in the working - age population will accelerate in the future. for this reason, society as a whole needs to create a working environment that promotes an increase in labor market participation, especially by the elderly and women. in this context, i would like to note that female labor market participation in japan remains low in international comparison ( chart 11 ). second, it is necessary to raise productivity growth in the economy as a whole. in this regard, japanese firms have been diligent, of course. typical examples are production and inventory management through just - in - time systems as well as kaizen ( continuous improvement ), a term that has made it into english. following the burst of the bubble, japanese firms have also been working on reducing labor costs. for individual firms, efforts to pursue operational efficiency are certainly important. however, in a world of increasingly bis central bankers ’ speeches fierce global competition, these efforts alone do not lead to an improvement in productivity. the reason why japan ’ s walkman once dominated markets around the world is that, in addition to high product quality, it offered a new lifestyle, allowing users across all age groups to listen to music outside the home. taking this as an example, japanese firms need to make greater efforts not only to improve the functionality and quality of products from the perspective of monozukuri, a japanese expression for “ creating substance, ” but also to provide new value from the perspective of shikake zukuri, or going beyond developing a product to create an environment that the product can thrive in. 2 thus, what is needed is for firms to make greater efforts to tap latent consumer demand and create new added value. at the same time, in terms of improving productivity in the economy as a whole, efforts at the micro - level alone are not sufficient. what is also crucial is to enhance the metabolism of the economy as a whole, that is, not to impede the smooth transfer of production resources such as capital and labor from areas of shrinking demand to areas of growing demand. moreover, it is vital to make efforts to actively capture demand in overseas markets that are enjoying high growth