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The biggest challenge for the Albanian economy will no longer be the pandemic but inflation. The increase in prices is the main reason and according to experts, more than half of the inflation in Albania is imported.
Inflation and not coronavirus is already the main challenge of all economies, in Albania and the world.
Albania is experiencing higher inflation than the target set by the Central Bank and this, uncontrolled increase in prices is impoverishing the pockets of citizens. Ermal Miha, meat and dairy trader shows that the increase comes in conditions when Albania is lacking raw materials:
“The farmer who used to keep 15 cows, now keeps only five. In conditions when there is less production and demand is higher prices rise. In the last two or three years, the prices of livestock have increased by 70-80 ALL per kilogram. This affects purchasing power because consumption decreases. In my opinion, this situation will become even more grim. “
According to economic expert Elvin Meka, inflation will continue to rise further:
“Albania has 50% of inflation imported from abroad. In the world the expectations are to lower the energy prices that have jumped these last two months. “The supply chain crisis is also going on and there is no bad news coming from China, so we do not expect price cuts for another six months.”
In inflationary conditions, even raising wages is no longer an option according to the expert
“It is a quick solution, but it would be self-destructive, because this increased purchasing power would bring even more demand, while supply is lower. “That could be dangerous.”
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