Brexit may have rollover effects on Albania and the region says Governor of the Bank of Albania

Tirana, Oct 27 (Tirana Echo) – Brexit will not have direct grave effects on Albania’s economy but its crossover impact on the European markets could harm the region’s EU integration and its financial future, says Bank of Albania Governor Gent Sejko.

“Brexit as a determining phenomenon for the Eurozone, cannot pass by without effects on Albania and the region. Brexit could be followed by negative effects on labor, goods and services markets, directly or inderectly, with short or long term effects” – said Sejko today during the annual conference of the Bank of Albania.

BoA says that direct consequences on Albania and on the region of Balkans are expected to be insignificant as trade balance with the UK is relatively low with exports of Albanian goods to the UK standing at a dire 2% and imports at 1% for the last 10 years. The FDI coming from Britanin remains low and although remmittances from emigrants are a higher level, they do not have determining effects on the Albanian economy.

However crossover effects from the impact Brexit will have on the European banking system, cannot be ignored.

“Brexit could lead to institutional developments which may impact the rules of economic development and European financial markets, while it may impact the EU enlargement process”, said Governor Sejko this morning in Tirana.

In other words, there are potential effects on Albania and on the region, but they remain difficult to be determined.

The Governor hopes that Brexit will not generate centrifugal forces which can harm the EU integration process, leading to more trade barriers and restrictions on freedom of movement which can then lead to a fragmentization of the European financial sector.

Sejko also delivered an encouraging assesment of the current state of the Albanian economy.

“Our analysis and forecast confirm that the Albanian economy is experiencing a positive trend with progressive increasing of economic growth for the next three years. The growth continues to be generated thanks to higher private internal demand“, said Sejko.