Bank of Albania Governor Sejko: Mass emigration has become a serious problem for the economy

The Governor of the Bank of Albania stated that emigration has become a serious challenge for the economy and requires a response. During a joint conference with the EBRD, Gent Sejko said that the demographic crisis is putting pressure on the country's economic sustainability.

"Emigration, once considered a mitigating factor for unemployment and poverty, is increasingly emerging as a structural challenge. Sustained economic growth, historically low unemployment levels, and labor shortages in key sectors have made the long-term consequences of demographic changes more visible for both businesses and families," said Sejko.

According to him, these negative demographic developments could negatively impact both interest rates and inflation.
“Despite this achievement, negative demographic trends in Albania are expected to be persistent. Our research shows that these trends are likely to exert downward pressure on real interest rates. This environment limits the effectiveness of conventional monetary policy, as low interest rates leave central banks less room to stimulate the economy. At the same time, demographic changes could also complicate inflation dynamics. Our research shows that the increase in the labor market participation rate comes as a result of higher wages,” the governor said.

According to United Nations forecasts, these dynamics are expected to continue and intensify in the coming years, leading to the inversion of the demographic pyramid.
"The 2023 population census records about 2.4 million inhabitants, approximately one third less compared to 1990. Meanwhile, the average age has reached almost 43 years. The rapid demographic transformation is reshaping the Albanian economy and society," the head of the BoA underlined.

To face the demographic challenge, the governor said that reform of the pension scheme and investment in the labor market are needed.

“These reforms require courage and honesty. They must address reforming pension systems, modernizing labor markets, designing realistic migration policies, and investing in ensuring healthy aging of the population. All of this means embracing new technologies, including artificial intelligence, in a responsible and inclusive manner. Above all, younger generations must remain at the center of economic decision-making,” Sejko concluded.

Happening now...

00:00 crossword

Free scheme January 29

22:50 POLITICS

Lapaj para Kryeministrisë: Rama ka ndërtuar një sistem monstruoz

22:39 POLITICS

Constitutional Court makes decision on former minister Ilir Beqaj, he remains in prison

22:18 HAPPENING NOW

Vlora in the dark! Part of the city without electricity, here is the cause of the outage

22:02 POLITICS

Strong statement by former socialist minister: Rama attempted to create a new party before taking over the SP

21:54 HAPPENING NOW

Elderly man loses his life in a bar in Korça, here's what is suspected

21:32 BOTA

French President: Tensions over Greenland are a strategic awakening for Europe

21:29 BOTA

Nicki Minaj openly expresses support for Donald Trump: I am the president's number one fan, God bless him!

21:22 POLITICS

Lutfi Dervishi's irony: Rama has fallen, but he has also defeated the opposition

21:18 HAPPENING NOW

Van goes off the road, accident resulting in death in Tepelena

21:00 SPORT

Unusual accident with consequences, the Superiore club loses the player they approached to replace the "rebel"

20:58 SHOWBIZ

The moderator's breakdown at the doors of the Court, Ogren Balluku: Neda raped me in front of the children....

20:44 EKONOMI&SOCIALE

The most expensive milk in the region/ Albanian farmers earn less, subsidies are lower than in neighboring countries

20:33 SPORT

German player "hits": Trump makes us feel not only German, but also European

Want to read more news