Hold onto your hats, folks! The heartbeat of Albania’s economy, its central bank, has just announced some fascinating updates. Despite the sizzle of internal inflation pressures, the bank is keeping the key rate steady at 3.25%. Why, you ask? Well, it seems like the demand for goods and services, coupled with soaring wages, has been keeping things hot on the economic front.
But wait, there’s more! Inflation, that ever-fluctuating economic indicator, has been on a rollercoaster ride, averaging at 3.9% in the fourth quarter of 2023. But fear not, it’s slowing down a tad, inching closer to the bank’s sweet spot of 3%, a target they’re aiming to hit by mid-2024.
Now, let’s talk growth. Picture this: Albania’s GDP grew by 3.5% in the third quarter of 2023, and early whispers suggest a similar vibe in the fourth quarter. What’s fueling this economic rocket? Well, the tourism sector’s getting a shot in the arm, and private investment is flexing its muscles, especially in services and construction. Talk about a power-packed duo!
Oh, and about those interest rates? The central bank’s not changing a thing there. They’re keeping the overnight lending facility rate at 4.25% and the overnight deposit facility rate at 2.25%. Stability is the name of the game, folks!
Lastly, let’s peek at Albania’s EU-harmonized index of consumer prices (HICP). In December, it rose 4.5% year-on-year, holding steady from November. Looks like some consistency in the mix!
Remember last year’s key rate hikes? The Bank of Albania had quite the workout, bumping up the key rate six times in 2022. March, July, August, October, November—those were the months of action!
So there you have it—Albania’s economic update served hot off the press! Keep your eyes peeled for more thrilling developments on the financial horizon.
