TIRANA, March 23/ATA/ Standard & Poor’s (S&P) Global Ratings Agency has ranked Albania for the first time into a better position, to ‘BB-‘ from ‘B+’. This rating improvement implies recognition of Albania’s economic stability and prudent management of public finances in the face of a series of successive challenges.
The agency estimated that Albania has consistently demonstrated its ability to withstand shocks, including the 2019 earthquake, the COVID-19 pandemic and the indirect macroeconomic effects of the Russia-Ukraine war. Despite these obstacles, the agency estimated that Albania’s economy has grown at an impressive average of 5.8% per year over the past three years, while simultaneously improving public finance parameters.
The agency attributed this economic resilience, in part, to a significant increase in tourism. This boom in the tourism sector helped Albania increase service exports by nearly 15% of the GDP between 2019 and 2023, significantly strengthening its external position.
Moreover, the agency noted that the Albanian authorities have shown their commitment to fiscal consolidation. Combined with strong economic growth, these efforts have led to a significant reduction in public debt, from a peak of 74.5% of GDP in 2020 to an estimated 58% in 2023.
The agency predicted that Albania’s moderate growth prospects and relatively high reserves provide protection against possible external shocks./r.e/p.s./
