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Governor Gent Sejko: Geopolitical tensions risk higher inflation

2025-12-17 16:16:00, Ekonomi CNA

Governor Gent Sejko: Geopolitical tensions risk higher inflation

The Governor of the Bank of Albania, Gent Sejko, stated that the forecasts for economic developments in the country remain positive, although the increase in geopolitical tensions poses a potential risk for rising inflation.

According to Sejko, economic activity is expected to continue growing, supported by the stable state of the private sector and the expansion of credit. These factors will also positively affect the labor market, with an increase in employment and wages.

The Governor emphasized that inflation is expected to return to the Bank of Albania's target of 3% in the first quarter of 2026. However, he warned that adverse developments in the international arena and the escalation of geopolitical tensions could bring additional inflationary pressures.

"The outlook for the future remains positive. Economic activity is expected to increase. Growth will be supported by the stable state of the private sector, credit expansion. Economic growth will increase with increased employment and wages. Inflation will return to the previous target of 3% in the first quarter of 2026. Increased geopolitical tensions could cause higher inflation," Sejko said./ CNA





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