Press release of the Minister of Finance Arben Ahmetaj, following the meeting of the Council of Ministers:
Following the communication of latest economic news to the public, in the wake of the announcement made by the International Monetary Fund board to approve the seventh revision in view of the program, I want to share with the citizens the utmost assessment that the International Monetary Fund has given in terms of the Albanian economic developments.
The International Monetary Fund directly confirms the sustainable growth and the positive trend of our economy. All this proves and confirms that the Albanian economy, the Albanian customer, have left the crisis behind. Consumers and entrepreneurship have left behind the crisis of 726 million dollar debts inherited from the previous government. They have left behind the old mentality of an old government that suffocated them with fines. Thanks to this upward positive trend, faith in the Albanian economy is increasingly strengthening.
Today I take also advantage of another very good news for the economy. INSTAT has just issued the register of enterprises, and I wish to share with the Albanian citizens a very interesting and encouraging figure.
9849 new businesses have registered in just 5 months, from January to May of 2016. 24% more than a year ago. Fabricated urban legends that foreign businesses are leaving, are countered by the very important figures issued by INSTAT. 680 new foreign businesses have registered only in the period from January to May, while only 640 in 2015. Therefore, foreign investors are increasingly interested in the Albanian economy.
Meanwhile, I want to share with the Albanian citizens also the fact that those registered in only 5 months, are almost as many as those registered in total in 2013. This comparison just shows how the Albanian economy is progressing.
At the same time, I want to share with you also the very interesting and encouraging figures in terms of consumption. The Bank of Albania has confirmed that the last two quarters of 2015 have had a positive growth of consumption. In addition, the Bank of Albania has noted that the first quarter of 2016 has a positive growth of consumption. So, we have 3 consecutive quarters of increased consumption. The fabricated legend of the fall of consumption is countered by these figures and by this trend. Here you have the figures of consumption, all of them increasing in all three last quarters, i.e. the last 2 of 2015, and the first one of 2016.
We certainly go on with the good news for the economy. I emphasize that good news are not yet sufficient, but they are sufficient to say that we have left the crisis behind, they are sufficient to say that we have entered a positive trend and have zeroed all the problems inherited from the previous government.
Imagine a creature emerging from the darkness at level zero, and starts going up. This is the Albanian economy. It has already left behind the darkness, and referring to all the very positive figures, the economic cycle seems very positive.
A lot has been said recently about foreign trade. Here I have the import figures which have increased significantly. Somewhere, sometime, without reading, it was said that increase comes from TAP, namely from the import of pipes of the Trans Adriatic Pipeline. We removed the TAP effect, and increase results to be 7%, which is a very positive sign that the Albanian economy has taken a turn for good, despite the artificial pessimism that SHQUP tries to create.
Let’s continue with exports. Here you have the volume verified in this quarter by INSTAT. A 4.35% increase in the volume of exports. The 4 month-period has a 1.5% increase.
Let’s continue with the added value in the economy. I will show citizens one page of the prestigious report of the Bank of Albania, which is directly verifiable by anyone who is interested. This is page 47, the quarterly report of the monetary policy of the Bank of Albania where it is stated: “private consumption is estimated to have increased during the first quarter of 2016.” It is neither me nor any member of the cabinet saying this, but the report of the Bank of Albania.
The report of the Bank of Albania has noted also a 10.8% growth in revenues from the value added tax, which refers directly to the added value in the economy.
Finally, after a long time, loan has started to increase. We have a figure which I call hopeful, for it is such. The consumer loan, i.e. loans for consumption have increased 12.6%. It is the first time in many years that this loan has increased by 2 digits.
This is the consumer’s confidence in the future of our economy. Economy gives Albanian consumers the idea of what is ahead, a positive cycle. And at the same time, in the first quarter of 2016 we have an overall increase of approximately 2.8% of deposits. These are figures that speak beyond the arguments we have between us.
The World Bank says that unemployment has dropped from 17.5% to 17.1%, and despite being still high, it is the lowest in the region. Since SHQUP keeps misinforming about young Albanians leaving because they are the most unemployed people in the region, the truth is that despite being high, youth unemployment has decreased significantly and is the lowest in the region. These are figures that counter all the deliberate propaganda to blacken the positive trend of the Albanian economy. SHQUP is trying to come to power by spreading mourning, and I can understand such a propaganda.
Meanwhile, data have shown that economic growth of the first quarter, which I believe will be confirmed in the coming weeks, is higher than the increase in the last quarter of 2015, which directly indicates that the economy is heading towards a consolidated trend of growth, and obviously it has all the potentials to achieve the envisaged 3.4% increase.
Let me remind you the debate on income. Revenues have a consolidated growth, and are moving in the right direction across the macro-economic and fiscal framework. We will have soon a very positive package that will ease procedures for the enterprise, in order for us to keep doing what we have done to improve the economy of Albania, and we will for sure continue to improve also the business climate.
Thank you!
