luljeta minxhozi : the contribution of the albanian diaspora to the nation ’ s economic development speech by ms luljeta minxhozi, first deputy governor of the bank of albania, at the second summit of the albanian diaspora, tirana, 4 march 2019. * * * dear ladies and gentlemen, on this special day, we have come together to share thoughts and discuss on how albanians, irrespective of where they live in the world, may achieve welfare and prosperity. this is a time, in our economic history, when the efforts of individual citizens to ensure prosperity are also considered as social efforts, for our nation to be prosperous and developed. such forums – in which albanians that live abroad come together to discuss, and see that while working for themselves and their families, they help the nation to advance – are signs of a rising national conscience and our modern civilisation. albania has a large diaspora, which is present in all continents and was estimated at 1. 15 million people in 2017, or around 40 % of the population that actually resides within the country. a characteristic of the albanian diaspora is that it is closely related economically with the home country, contributing to increased financial transfers from abroad. these transfers are in the form of : remittances which are net transfers from abroad and are calculated in the balance of payments at around eur 600 million per year, over 2013 – 2017, equal to 5. 7 % of albania ’ s gdp. income generated from seasonal emigration in the form of temporary employment. this category creates income in the form of primary income - compensation of employees, on average eur 250 million annually during 2013 – 2017. if we add other income unrelated to employment, total transfers from permanent and seasonal emigration ( remittances ) reach around eur 1 billion annually, or around 9. 0 % of nominal gdp. while the share of remittances, in terms of both the level of flows and of the ratio to gdp, is lower compared with mid - 2000s, their annual growth has resulted stable in more recent years, averaging 3 % for the 2015 – 2017 period. through its economic activity, the diaspora contributes positively to the albanian economy in two aspects : the first aspect are remittances and other forms of transfers. these have an evident role on the aggregate demand of albania, for financing households ’ consumption, and generating savings, which help to fund investments. their contribution to economic growth of albania has been cyclical

been reflected in a relative lack of confidence in europe ’ s future. however, backsliding into protectionism, as has been called for by some, would be like traveling back in time. there is no other way to reap the potential gains from globalization but to evolve towards further specialization, innovation and diversification into new areas of comparative advantage. in this context, let me mention the moribund doha round, which has even cast doubt on the future of the world trade organization ( wto ). although calls for protectionist measures to counter the increasing competition from asian economies should be taken seriously, i stand on the side of free trade and believe that protectionist pressures need to be firmly resisted. eight and a half years after its introduction, the euro has now firmly established itself as the second world currency. the increasing globalization of the world economy, with new players emerging on the world stage, has contributed to the very impressive expansion of the world economy in the recent past. yet, this dynamic growth has also spurred economic challenges, such as strongly rising commodity prices and significant current account imbalances. the economic upswing recorded in the euro area can be attributed, at least partly, to improved economic structures and is based on the stability - orientated framework of economic and monetary union. the ecb and the eurosystem respectively, will continue to support economic growth in the euro area by vigorously pursuing price stability. following this approach also guarantees that the euro can contribute most effectively to international stability.