TIRANA, Jan. 31, 2023 – Bank of Albania Governor Gent Sejko has joined voices of concern regarding the renewed trend of Albanians leaving the country to work abroad, citing negative long-term potential of having a smaller pool of local labor capital.
“It reduces the labor force — especially in its most qualified segments — and damages long-term growth prospects,” Mr. Sejko said this week, urging for “better coordination at the international level, to take care that the benefits from emigration and the free movement of people are shared as fairly as possible among countries.”
However, the head of Albania’s central bank also admitted there were positive aspects of emigration, including more funds through remittances and some expertise learned abroad coming back to the country.
“The phenomenon has generated foreign currency inflows and a general increase of knowledge and expertise, which are necessary for the development of the country,” Mr. Sejko added.
Sejko made the comments during a presentation event of the European Bank for Reconstruction and Development’s Transition Report for the 2022-2023 period.
The EBRD report noted that the Albanian economy will slow down significantly this year and growth is expected to be 3 percent, the most optimistic forecast so far, highlighting high inflation as one of the biggest risks.
Governor Sejko said inflation is expected to ebb through 2023, with the central bank being helpful to bring it back to its 3 percent in the first half of 2024.
