TIRANA, May 2 (Xinhua) -- The Albanian economy experienced a positive growth trend during the first quarter of 2018, following on the 3.4-percent growth in the last three months of 2017, said Bank of Albania (BoA) governor Gent Sejko on Wednesday.
"According to INSTAT data (Albanian National Institute of Statistics), the Albanian economy grew by 3.4 percent in the last quarter of 2017. The indirect data available suggests that a similar growth rate was maintained in the first quarter of this year," said Sejko.
According to Sejko, the growth is largely supported by an increase in consumer spending and private investment. In macroeconomic terms, growth was driven by improved private sector confidence, rising foreign demand, and high levels of foreign direct investment, as well as favorable financing conditions in the country.
"The expansion of economic activity has led to increased production and employment capacities," added Sejko.
According to BoA, the country's economic activity continues to remain below its potential level.
Moreover, Sejko declared the inflation rate was 1.9 percent in the first quarter of 2018, recording a slight increase from the value of the previous quarter. Inflation growth mainly reflected higher rental prices, while food prices continued to fluctuate.
The Albanian economy is expected to continue to grow in the medium term, driven by stimulating financing conditions and by the expected improvement of the foreign environment.
Meanwhile, the BoA supervisory council decided to keep the key interest rate unchanged at 1.25 percent.
