Moody’s reaffirms Albania’s credit rating at Ba3 with a stable outlook

The international credit rating agency Moody’s has reaffirmed Albania’s sovereign credit rating at Ba3 with a stable outlook, citing the country’s macroeconomic stability and resilience in the face of multiple external shocks — including the 2019 earthquake, the COVID-19 pandemic, and Europe’s energy crisis.

Why is this important: The reaffirmation strengthens investor confidence in Albania’s economy and signals continued trust in the government’s fiscal management as the country advances toward EU integration.

Economic outlook: In its report, Moody’s highlights Albania’s strong domestic consumption, growing tourism, and energy investments as key drivers of sustainable growth:

“Real GDP growth is projected at 3.7% in 2025 and 3.5% in 2026, driven primarily by robust domestic demand and investments in tourism and energy. The tourism sector will remain a significant contributor, improving service exports and stimulating construction investment,” the agency noted.

Moody’s emphasized the steady decline in public debt since 2022 and praised authorities for maintaining fiscal discipline:

“The public debt-to-GDP ratio declined to 54.2% in 2024, down from a peak of 74.1% in 2021. Authorities are expected to comply with fiscal rules to maintain a balanced primary budget and gradually reduce debt toward 45% of GDP by 2026.”

The agency also pointed to EU funding programs and structural reforms as positive factors that will support Albania’s medium-term growth and fiscal consolidation.

What else: Moody’s decision is viewed as a positive signal for international investors and a strong endorsement of Albania’s progress toward EU membership, particularly in strengthening financial stability, governance, and infrastructure development.