The increase in government revenue resulting from the price rise should be used to compensate the poor. This is the appeal made by the Governor of the Bank of Albania, Gent Sejko, at the presentation of the institution’s 2021 Annual Report in the parliament floor.
The head of the Central Bank emphasized that the rise in food and energy prices on foreign markets has raised costs for Albanian consumers and enterprises. The unpredictability of the conflict’s duration and repercussions in Ukraine has raised stock market volatility and erected additional hurdles in supply chains, further complicating the issue.
Estimates from the Bank of Albania indicate that the price hike will weigh on Albanian consumers and the regional economy for at least two years. In the meanwhile, according to the governor, the government should focus on structural reforms that will improve local output and ensure sustainable economic growth after overcoming this setback.