Fitch Solutions Upgrades Albania’s Economic Rating for 2021

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“Fitch Solutions”, a well-known unit of the international rating agency “Fitch”, published the latest risk report for the second half of 2021 for Albania. In this report, the forecast for the growth of Albania’s Gross Domestic Product (GDP) for 2021 has been increased by 1.5 percentage points, bringing it to 5.7%. 

This assessment is in stark contrast with the forecast of February of the same year, where the country’s economy was expected to expand by 4.3% during this year. 

According to the study, the rapid and continuous progress of Covid-19 vaccination in Albania is expected to play a supporting role in the sustainable recovery of private consumption. Also, the improvement of tax collection is predicted to bring a significant positive result in public finance. 

“Fitch Solutions” predicts that the demand from Europe for Albanian goods will increase resulting in a boost of exported goods throughout the year. On the other hand, service exports will need more time to recover as a result of continuous outages by Covid-19.  

As stated in the report, government funding for deferred projects and reconstruction activities related to the November 2019 earthquake and the increase in public investments will be crucial to this year’s economic growth. 

All in all, the optimistic economic growth trends presented in this report, combined with the previous positive assessments of the “Moody’s” rating agency, although moderate, create a favorable climate for further development of existing businesses in Albania, encourage the opening of new businesses and are also an added element of security for attracting foreign investments. 

For additional information, please contact our Country Executive, Ms. Drilona Likaj, at our Eurofast office in Albania via email at albania@eurofast.eu . 

Eurofast is a regional business advisory organization employing local advisors in over 23 cities in South East Europe & the Middle East . The Organization is uniquely positioned as one stop shop for investors and companies looking for professional services in Tax & Transfer Pricing – Payroll & Employment – Accounting & Audit – Advisory & Corporate.

23/8/21