S&P reaffirms Albania's rating - At "BB" and "stable" outlook
The credit rating agency “Standard & Poor's Global Ratings”, in its analytical report published on March 23, 2026, has reaffirmed Albania's long-term sovereign credit rating at “BB”, while also maintaining a “stable” outlook. This assessment reflects the agency's continued confidence in Albania's macroeconomic stability.
S&P assesses that the Albanian economy has shown resilience to successive shocks in recent years, including the 2019 earthquake, the COVID-19 pandemic and the energy price crisis.
In terms of economic growth, S&P forecasts real GDP growth of 3.7% for 2025 and above 3% for the period 2027-2029. Tourism will continue to remain a key pillar of economic growth. Tourism-driven service flows have structurally strengthened Albania's external position, helping to narrow the current account deficit to low single digits.
In terms of public finances, S&P forecasts a budget deficit of around 2.4% of GDP in 2026, slightly above the authorities’ 2.3% target due to slightly lower economic growth assumptions for 2026. Over the medium term, the agency expects deficits to average around 2% of GDP by 2029 and public debt to stabilize at around 50% of GDP under the fiscal framework anchored by the Organic Budget Law. This prudent fiscal approach will ensure the continued stability of public finances.
A positive development highlighted by S&P is the progress of Albania’s EU accession process, with Albania having now opened all negotiating chapters of the EU “acquis”, marking an important milestone in the accession talks.
Albania’s foreign exchange reserves have strengthened significantly, rising to $8.7 billion in January 2026, an increase of around 33% compared to the previous year, supported by strong flows from tourism, remittances and foreign direct investment.
The banking sector remains liquid, well-capitalized and profitable. Non-performing loans have continued to decline to 3.85%, reflecting strong underwriting standards and strong credit growth.
The S&P rating confirmation is a clear indication of Albania’s continued progress and a positive signal to international investors, reflecting the country’s strong economic resilience and more effective policy management.
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