achieve and maintain price stability. achieving this objective implies keeping inflation at 3. 0 %. our monetary policy employs the inflation targeting strategy, whereas the exchange rate employs a free floating regime. the monetary policy of the bank of albania is forward looking ; it aims to be a flexible, balanced and transparent policy. bis central bankers ’ speeches the albanian economy has been facing, for some time, a sluggish economic environment. during 2014, our monetary policy was drafted and implemented amid low inflationary pressures and below - potential economic growth. annual inflation, in 2014, averaged 1. 6 %, standing lower than the 1. 9 % average rate recorded a year earlier. the low inflation rates were dictated mainly by low pressures generated in the domestic economy, as well as by the low inflation rates in our trading partners and low inflation expectations by economic agents. according to the albanian institute of statistics ( instat ) data, the albanian economy grew 1. 9 % in 2014, against the 1. 5 % growth in the previous year. economic growth was driven mainly by the domestic demand and – excluding construction – it was reflected in activity expansion across all the sectors of the economy. economic activity grew, benefitting from the eased financing conditions as well as the improved confidence and balance sheets of the real and financial sectors of the economy. these factors contributed to the increase in private consumption and investments. excluding the payment of arrears, the fiscal policy has been consolidating during 2014. on the other hand, trade exchanges with abroad did not generate positive impulses for economic growth. regardless of the higher growth rate, the albanian economy continued to operate below its potential. as a result, production capacities were not fully utilised and the situation has dictated unemployment rates, which go beyond the equilibrium level. as we have mentioned earlier, the spare capacities in the labour market lead to low increase in wages, production costs and final prices in the economy. these phenomena have been present in albania during 2014. in bank of albania ’ s opinion, aggregate demand is the main problem facing the albanian economy ; thus, addressing it requires the increase of macroeconomic stimulus. reflecting the above, our monetary policy has been increasingly accommodative. the bank of albania lowered the key interest rate three times in 2014, bringing it down from 3. 0 % to 2. 25 %, and further down to 2. 0 % in the first quarter of 2015. our monetary operations consisted in continuous liquidity injection in the banking system,

gent sejko : launch of the ebrd transition report 2022 - 23 opening remarks by mr gent sejko, governor of the bank of albania, at the launching of the ebrd transition report 2022 - 23, tirana, 30 january 2023. * * * dear representatives of the ebrd, dear friends, colleagues and media representatives, first, i would like to thank you for participating in the presentation of the transition report 2022 - 23 by the european bank for reconstruction and development. as always, this report remains a professional and authoritarian analysis about the performance of transition economies in convergence process, fully reflecting the short and medium - term challenges they face, as well as a precious guideline of stabilisation and development policies needed to support a sustainable economic and social progress. in this context, it is a special pleasure for the bank of albania to host again this event, which brings together researchers of this field, important actors of public and private sectors, and representatives from the financial industry. i am confident that this discussion forum will facilitate the exchange of the ideas in addition to the identification of the necessary measures to address the challenges that lie ahead. before leaving the floor to the ebrd representatives to present the report, allow me to share with you the opinion of the bank of albania on some of the main issues addressed in it. the remit of this year's report are the economic headwinds arising from the war in ukraine, considered in both short - and - medium term as well as in long - term perspectives. this tragic war has caused huge losses of human lives, mutilations and long - term social consequences, while it has shaken the global geopolitical order. rightfully, this transition report highlights that we are experiencing an unusual time, and for most part of society, unimaginable till some time before. in economic perspective, this conflict was a strong supply - side shock across all the european continent. this shock was reflected in surged inflation rate and heightened uncertainty, worsened trading terms, expanded current account deficits, and tightened financial conditions. against this backdrop, within a short time of period, after the end of the pandemic emergency, the regional economies had to face another major challenge, which jeopardised the economic and financial stability and harmed the economic growth prospects for the future. naturally, the albanian economy was not an exemption of this reality. after a rapid and thoroughly economic rebound in 2021, the external