Standard & Poor's publishes assessment of the Albanian economy: Reduction of public debt and increase in exports
2025-03-24 15:41:03
TiranaPost
The international rating agency Standard & Poor's (S&P) has upgraded the rating of the Albanian economy, raising it from "BB-" to "BB" and confirming a stable outlook. This upgrade reflects Albania's strengthening economic and fiscal performance over recent years, positioning the country to attract more foreign investment.
This improvement is related to the reduction in public debt, which has fallen significantly by 10 percentage points of GDP since 2019. Also, the current account deficit has been halved, while foreign direct investment flows have increased support for sustainable economic growth.
A key factor in this improvement is the growth of services exports, which have doubled in value since 2019, reflecting the development of the tourism sector, one of the main engines of the Albanian economy. S&P predicts that Albania will maintain economic growth above 3% for the period 2025-2028, supported by investments and domestic consumption.
In fiscal terms, the agency assesses that Albania's public finances are well managed, while the authorities have adopted legislative reforms to strengthen progressive taxation and improve tax compliance. These measures, together with fiscal consolidation efforts, will help maintain moderate budget deficits, averaging around 2% of GDP until 2028.
