The international economic rating agency, Standard & Poor’s (S&P), has upgraded Albania’s rating from “BB-” to “BB”, confirming a stable outlook. This improvement reflects the strengthening of Albania’s economic and fiscal performance in recent years and places the country in a favorable position to attract foreign investment.

The rating upgrade is linked to the reduction of public debt, which since 2019 has seen a significant decline of 10 percentage points of GDP. Likewise, the current account deficit has been more than halved, and net inflows of foreign direct investment have increased, supporting the sustainable growth of the economy.

One of the main factors behind this improvement is the export of services, which has doubled in value since 2019, reflecting a significant rise in the tourism sector—one of the main drivers of the Albanian economy. S&P forecasts that Albania will maintain economic growth above 3% for the period 2025–2028, supported by investment and domestic consumption.

On the fiscal side, the agency assesses that Albania’s public finances have performed well, while the Albanian authorities have adopted important legislative reforms to strengthen progressive taxation and improve tax compliance. These measures, along with efforts for fiscal consolidation, will contribute to maintaining moderate budget deficits, averaging around 2% of GDP until 2028.