PRESS RELEASE
Launching of the EBRD Transition Report 2023-24

In this context, Governor Sejko said that the Bank of Albania is pleased to welcome this annual event, which brings together researchers, important stakeholders of the private and public sector, as well as representatives from the financial industry.

The topic of the Report “Transitions big and small' - urges us to look further afield. The quality of life and the affecting-related factors, the new geopolitical realities and their consequences on the development strategies of countries in transition, climate change, global warming and the reduction of biodiversity, are undeniable realities with significant consequences, on economies also on our society and communities,” underlined Mr Sejko.

Next, the Governor addressed some of the report’s aspects in the context of the Albanian economy. He pointed out that the Albanian economy has shown a good performance in dealing with the successive shocks of the last four years. The sound foundations of the Albanian economy, the flexibility of our private sector, coupled with the implemented prudential macroeconomic policies, have enabled a sustainable economic growth and an overall economic and financial stability.

In particular, inflation has been coming down, financial markets appear calm, while the growth in employment and wages have supported households’ budgets. On the other hand, the banking sector appears sound, while access to finance and financial inclusion have improved. Compared to regional countries, Albania has one of the highest economic growth rates, the lowest inflation rates and the slowest increase in financing costs.

Mr Sejko added that this positive landscape encourages us to be more far-sighted, to new challenges which are already turning into an increasingly tangible reality. Among the topics addressed in the Transition Report 2023-24, Governor Sejko delved on that of climate change. Global warming and the increased frequency of climate-related natural disasters are weighing on all countries and economies, in an ever greater manner, whether advanced or developing, large or small ones.

Governor Sejko emphasized that although the central banks are not the primary actors which can facilitate the adaptation of the economy to climate change, the Bank of Albania has decided - without prejudice to its legal mandate of price stability – to give its contribution in this regard.

Bank of Albania is focused on three directions: First, monitoring climate risks and strengthening our analytical capacities in this area. Second, promoting green finance. To this end, the Bank of Albania has recently approved the "Strategy for the Management of Financial Risks related to Climate Change, 2023-25". Third, strengthening collaboration with national and international partners. Addressing risks of climate change and transitioning to a sustainable economy are global challenges.

The Governor thanked once again the EBRD for its contribution and support through financial investments in various areas of the Albanian economy.

Next, the representatives of the European Bank for Reconstruction and Development presented the EBRD Transition Report 2023-24, as well as the assessments on the Western Balkans.

In conclusion, Governor Sejko and the EBRD representatives responded to questions from attendees and journalists present in this event.