FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
TIRANA STOCK EXCHANGE
CAPITAL MARKET DEVELOPMENT AND ECONOMIC OUTLOOK
Economic situation
The Albanian economy faced with more
challenges in 2011. Albania’s economy
maintained its positive growth rates during this
year. The economic growth stood at 3%.
Annual growth of Albanian exports in value for
the first eleven months of the year was 19.9%,
implying slower rates compared with the
corresponding period of a year earlier. On the
other hand, imports accelerated their annual
growth to 12.2%. Trade deficit widened by 8.1%,
illustrating negative effects of price rise in global
markets. The trade deficit reveals that about
50% of its increase is created by the balance of
electric energy exchange.
Annualized contraction of net exports deficit is
assessed to be resulting from imports of goods
and services decline by about 4.2% in real terms
and exports upsurge by about 8.6%.
The exchange rate has been stable and inflation
has been entirely within the objectives set by the
Bank of Albania increased by 2.9% annually.
Financial markets during the second half
of 2011 were calm and reflected relatively
downward premiums on liquidity risk and
inflation. Successive key rate cuts were swiftly
reflected in the interbank market. In the primary
market, government security yields dropped,
reflecting the key interest rate cut as well as
the low demand of the public sector for loans.
Moreover, transmission of monetary policy
signals is expected to be extended fully to the
deposits and loans market, in accordance with
the transmission mechanism time lags.
Key Information Contacts
Bank of Albania www.bankofalbania.org
Ministry of Finance www.minfin.gov.al
Albanian Institute of Statistics www.instat.gov.al
Albanian Financial Supervisory Authority www.amf.gov.al
Ministry of Economy www.mete.gov.al
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Fiscal policy was stimulating in 2011,
materialized in positive contribution of public
spending to aggregate demand. At the end of
November, budget deficit was ALL 38 billion,
reflecting expansion by about 65% in annual
terms. However, the budget deficit has remained
within levels provided in the budget plan for
2011. The deficit created by the scheme of
social security system has exceeded the budget
deficit by about 34%. Current surplus estimated
to 18.1 billion, or about 15.7% higher than the
same period a year ago.
* Information provided by the Tirana Stock Exchange.