TIRANA, January 27 – Bank of Albania Governor Gent Sejko said the Albanian economy has shown strong resilience in recent years. He credited low inflation, steady growth, rising employment, and higher wages.

Speaking at the presentation of the 2025–2026 EBRD transition report, Sejko said labor market conditions improved significantly. Unemployment fell to historically low levels, and productivity rose compared with the period before the global financial crisis. Higher labor participation helped offset demographic pressures.

Sejko warned that negative demographic trends are likely to continue. He said these trends could lower real interest rates, reduce the effectiveness of monetary policy, and complicate inflation dynamics. He added that rising wages supported higher labor participation.

Population data for 2023 show Albania has about 2.4 million residents, with an average age of nearly 43. Sejko noted that migration, once a relief for unemployment, now presents a structural challenge for the economy and society.

He emphasized that addressing these pressures requires bold reforms. Sejko called for pension system reform, labor market adaptation, sustainable migration policies, and investments in the welfare of the aging population. He also stressed the role of technology and artificial intelligence, and the need to involve younger generations in economic decision-making.

/a.p./