Following the signing ceremony of the Letter of Good Understanding to approval of the sixth and final review of the 3 year arrangement with IMF, Prime Minister Sali Berisha and Ms. K. Ann-Margret Westin, Resident Representative answered to media interest on economic growth of Albania.

Question: Ms. K. Ann-Margret Westin, what is Albania economic growth during 2008 according to IMF evaluation?

Ms. K. Ann-Margret Westin: Thank you very much for the question. I believe you are based on the recent publication of the trimester GDP forecast of Albania over 2008. We are happy with these indicators and about assisting with one expert on this field. It is crystal clear that these indicators show an economic growth of about 10% up to the end of the third trimester. There is something I would like to say, the trimester GDP is based on certain indicators which are narrower than the indicators used to estimate the annual GDP. The tendency is that the trimester indicators are more variable.

Also it is quite natural that because it is the first time they are made public, these results will be subject of review. The way the trimester GDP is estimated also reflects formalization of economy, i.e. the transfer of the businesses from the informal into the formal sector. Thus, if formalizing economy is a very welcomed phenomenon, this does not necessarily mean economic growth in itself.

In regard to GDP annual growth 2008, we stick to our forecast of 6%. Along with these mentioned reasons of growth overestimation in the trimester statistics, the reason we keep the 6% annual growth forecast for 2008 is because over the third trimester were noticed some signs of slow down and everyone is aware of the world economic crisis impact during the final trimester of 2008. This should be taken into consideration. To remind you of something; in November, because of the world crisis, the IMF reduced forecasts of economic growth for the current year and next year, for all the countries of the world.

Premier Berisha: The economic growth has been a constant discussion between the IMF and the government of Albania. The 6% economic growth is great, but the real figure of economic growth is very important for the government because the government bases itself on it to produce some performance indicators. According to the universal practice, at first it is defined the trimester economic growth and further the annual growth.

It has been my absolute belief about an underestimation of the economic growth in Albania. I have several facts to back my opinion. 

Therefore, while having complete good understanding of the forecast, I believe it is an obligation of all the national and international factors to attribute this to the National Institute of Statistics. This is because it is true there is a formalizing of the economy, but it is true there is an increase of new businesses, by 4 thousand businesses over 2008. It is true there is a formalization of the economy, but there is a notable increase of exports as well. It is true that 2008 changes in a crystal clear way from 2007. But, there are two other things: Firstly, I have not agreed of economic growth in 2007 and secondly Year 2008 has been the period of electricity supply to the Albanian enterprises. 

I expect the Institute of Statistics to provide the annual economic growth. Naturally, forecasts are acceptable because to forecast 2009 or to define the budget and next year policies, one should base oneself on the forecast and not expect the annual result that comes out in March.

Your problem as a media is: As a whole your knowledge of economic growth is zero, not to say below minus level. If someone puts a pen in your hand and tells you to write the indicators on which is based the calculation of the economic growth, you are not able to write even two of them. But, you are interested in the contradiction or diversity that is naturally a very normal part of life.