In its most recent analysis, dated on May 21st 2021, the international rating agency “MOODY’S”, evaluates Albania as a country with stable prospects and affirms Albanian Government’s B1 rating.
The decision to confirm the rating according to “MOODY’S” is based on Albania’s resilience to the pandemic shock, despite persisting challenges, and on high public debt burden has remained balanced against expectations.
According to the agency, the Albanian economy has been significantly affected by the pandemic, considering the shock came at a time when the economy was weakened by the earthquake of November 2019. Another factor that has amplified the effect of the pandemic on the economy is the significant dependence the Albanian economy has on the tourism & hospitality sector.
The fact that the Albanian economy has managed to resist these shocks gives positive indications that economic growth will return in 2021, the public debt will follow a downward trajectory, and also the mid-term growth forecast will remain favorable.
In this analysis, it is also predicted that the recovery of the situation will be enabled mainly by the inflows of foreign direct investment, and the level of the country’s foreign exchange reserves will remain adequate.
In the context of attracting foreign direct investment, this reconfirmation of the B1 rating, is a positive indicator for Albania, as it guarantees comprehensive stability of the country.
What is more, this assessment has been confirmed through an official announcement by the Albanian Ministry of Finance, which states that the Albanian Government will again target the objectives according to which the debt should be reduced every year until it reaches 45% of GDP and will continue to encourage economic policies in support of implementation of reforms driven by EU integration requirements.
For additional information, please contact our Country Executive, Ms. Drilona Likaj, at our Eurofast office in Albania via email at firstname.lastname@example.org.
Eurofast is a regional business advisory organisation employing local advisors in over 23 cities in South East Europe & the Middle East (SEEME). The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & the Middle East.