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The international rating agency Standard & Poor’s, in its most recent review, has confirmed for Albania the current rating in “B +” as well as a “stable” perspective.
The well-known risk assessment agency concludes that the real economic growth in the country will remain solid in the coming years, on average 3.5-4.3 percent, strongly supported by household consumption, infrastructure investments and tourism recovery.
Its expectations are that the fiscal deficit will decrease in the medium term, resulting in a decrease in government debt in relation to Gross Domestic Product.
It is also estimated that external pressure will be manageable given that the country’s foreign exchange reserves remain high and external debt increases only moderately, thus supporting exchange rate stability over the coming years.
The agency’s assessment is supported by Albania’s economic growth prospects, the relatively flexible exchange rate regime and strong foreign exchange reserves. “Although fiscal consolidation is likely to slow, we believe the government deficit will narrow in the coming years,” it said.
The Agency estimates that Albania’s economic recovery in 2021 was strong, but given the low rate of savings in the economy, it believes that the necessary reforms in improving the business climate and attracting foreign investment inflows will be critical for Albania to maintain a higher pace of revenue convergence with counterparts in the region and the euro area.
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