The Albanian economy is stable. With this assessment, Standard & Poor’s expects economic growth this year to be 2.4%, due to weak demand from Europe and tighter monetary policy.

The economy will then recover to 3%, supported by easing financial conditions and improving global economic activity.

The rating given by the agency is also B+ for the public debt, which will decrease to 45% of the Gross Domestic Product, from 58.5% that is today.

The stable outlook reflects the agency’s view that Albania can continue to manage the indirect economic effects of the Russia-Ukraine conflict. Albania’s banking sector is considered liquid, well-capitalized and profitable. Non-performing loans reached 5% of loans in December, compared to a peak of nearly 25% in 2014.

EU membership has remained a key policy priority of successive government administrations since Albania was declared a candidate in June 2014.