"Trade War could increase interest rates" - Shehu: Increased uncertainty will also affect inflationary pressures
The Trade War could lead to an increase in prices and interest rates. This was stated by the Director of the Financial Stability Department of the Bank of Albania, Klodion Shehu, according to whom these increases from the Trade War could affect consumption and investment.
"We have important developments at the international level, due to the geopolitical situation and the trade war, and for this reason it remains to be seen what the outcome of this development that has occurred in international markets will be, but in any case, if it is accompanied by increased uncertainty, there is a high possibility that there will be an increase in interest rates, an increase in inflationary pressures and this will affect consumption and investment in general, and of course our economy could also be affected by these impacts."
During the presentation of the Financial Stability Report, Shehu also highlighted that credit quality has improved in the second half of the year, falling to 4.2%, the lowest level in the last 15 years. Meanwhile, the banking sector's exposure to market risk, mainly exchange rate and interest rates, remains controlled.
"The banking sector has grown, has ensured its activity even further during 2024, even during the period. In terms of Gross Domestic Product, its weight has reached 93.2%. It has grown in terms of the period, but there is a slight decrease compared to a year earlier. In general, the positive contribution to the performance of the banking sector's assets has been made by the increase in lending and investments in securities."
Bank profits improved during 2024, mainly from net interest income in the form of commissions, or income from improving the position in international investments. The Albanian economy grew by 4.1% in annual terms, a growth supported by domestic consumption and private sector investments.
Poll
NATO seeks more funds from members - Rutte aims to increase investments, despite tensions with the US
NATO Secretary General Mark Rutte has urged the 32 member countries to devote more funds, equipment and political energy to the world's largest military......
Hotel certificates only through e-Albania - Topuzi: The sector is formalized, but other standards need to be met
The government has approved a decision that focuses on improving the application process for the classification of tourist accommodation structures, by......
Rama with tourism businesses in Velipojë - "Development of tourism with the highest European standards"
Prime Minister, also chairman of the Socialist Party, Edi Rama, held a meeting with the tourism businesses of Velipoja. He considered the Velipoja area as......
Trump's tariffs, a "threat" for American firms - Companies warn that trade uncertainty could increase prices
U.S. retailers and other major companies expressed concern that so-called "reciprocal tariffs" on all U.S. trading partners, threatened by the Trump......
"Complete transformation of education and healthcare" - Berisha explains the PD-ASHM program in a meeting with medical students
"Our Greater Albania project envisages a complete transformation of education and healthcare." This was stated by the leader of the Democratic Party, Sali......
Public contracts, 20 operators excluded - PPA: 50% of them submitted false data in tenders
20 economic operators were excluded from the right to win public contracts during 2024. According to data from the Public Procurement Agency, 10 of them were......
Trump "protects" the rich - Refuses to raise taxes on millionaires to prevent their exodus
President Donald Trump said he doesn't want to raise taxes on the wealthy because he's afraid they'll leave the country. When a reporter asked Trump if he......
The European Union will reform Frontex again in 2026!
The European Commission will propose new legislation in 2026 to reform Frontex, the EU border agency, with the aim of strengthening its presence, role and......
