Albania’s credit rating reaffirmed at “BB” with stable outlook by S&P

International credit rating agency Standard & Poor’s has reaffirmed Albania’s sovereign credit rating at “BB” with a “stable” outlook, signaling confidence in the country’s macroeconomic stability despite global challenges.

Why is this important: The rating confirmation reinforces investor confidence and underlines that Albania’s economy is on a steady growth path. According to the S&P report, GDP is projected to grow by 3.6% in 2025, driven by household consumption and rising real wages. Tourism is expected to remain a major growth engine, with an average GDP expansion of 3.5% per year forecast for 2026–2028.

Context: Public finances are also improving. The government deficit is expected to decline to around 2% of GDP, putting public debt on a downward trajectory toward approximately 51% of GDP by 2028.

Beyond fiscal stability, EU integration is seen as a positive factor. Albania has opened 24 of 33 negotiating chapters and secured a potential €920 million funding package from the European Commission, part of the €6 billion Growth Plan for the Western Balkans.

Finally, the report highlights the strength of Albania’s external buffers, noting that foreign exchange reserves have reached $7.8 billion, serving as a critical shield against external shocks.

Next steps: The stable outlook indicates that, barring major external or domestic shocks, Albania’s credit profile is expected to remain solid, offering the government more room to pursue growth-friendly policies and further its EU accession reforms.