TIRANA, March 14 – Moody’s Ratings reaffirmed Albania’s long-term sovereign credit rating at “Ba3” with a stable outlook in its periodic review on March 5, 2026.

The agency highlighted the resilience of the Albanian economy. It projected real GDP growth of 3.6% in 2025 and 3.5% in 2026. Tourism activity, steady foreign direct investment—especially in energy and tourism—and higher labor market participation support this outlook.

In fiscal terms, the agency said budget implementation remained prudent in 2025. It estimated the deficit at 1.8% of GDP, up from 0.7% in 2024 but still below the government target of 2.4%.

The agency expects the public debt-to-GDP ratio to decline to around 51% by 2027, from an estimated 52.6% in 2025. Strong economic growth and a balanced or slightly positive primary fiscal balance drive this trend. It also expects a gradual decline in public debt over the next three to five years, supported by the government’s prudent fiscal framework.

The stable outlook reflects the agency’s assessment that upside and downside risks to Albania’s “Ba3” rating remain balanced. It expects reforms linked to the EU membership process to continue at a gradual pace. It also expects government and banking sector liquidity risks to remain contained.

The reaffirmation signals Albania’s macroeconomic stability and ongoing structural reforms. It also sends a positive signal to international investors and supports the country’s long-term European integration goals.

/a.p./