Standard & Poor’s Global Ratings has reaffirmed Albania’s long-term sovereign credit rating at “BB” and maintained a “stable” outlook.
In its analytical report published on Sept. 21, the agency said Albania’s per capita income has increased significantly in recent years. At the same time, government debt and overall external debt have followed a downward trend.
S&P said the Albanian economy remains resilient. It has also withstood several shocks in recent years. The economy grew by an average of 4% in real terms between 2022 and 2025.
Looking ahead, S&P forecasts real GDP growth of 3.4% in 2026. This would compare with 3.7% in 2025. The agency expects average annual growth of around 3% between 2027 and 2029.
According to S&P, exports of services, private consumption and investment will support growth. Meanwhile, Albania’s external position has strengthened in recent years, mainly due to strong tourism performance. Current account deficits also narrowed significantly between 2023 and 2025.
On public finances, S&P described Albania’s fiscal position as strong compared with emerging markets. It also highlighted the country’s cautious fiscal framework.
The agency forecasts a budget deficit of 2% of GDP in 2026. This remains below the authorities’ 2.3% limit. S&P expects the deficit to average around 2% of GDP through 2029.
Furthermore, the agency considers Albania’s fiscal rule targets under the Organic Budget Law achievable. It also noted that the country has recorded a primary surplus since 2023.
S&P expects public debt to fall to 50.5% of GDP by the end of 2029, from 52.9% in 2025.
The agency also highlighted Albania’s EU accession process as a positive development. It pointed to progress in judicial reform and the fight against corruption and organised crime. It also noted that Albania has opened negotiations on all six EU acquis clusters, calling this an important milestone in the accession talks.
Meanwhile, Albania’s foreign exchange reserves reached €8.1 billion, or 27% of GDP, at the end of July 2026. Strong service exports, particularly tourism, supported the increase. Foreign direct investment inflows also helped cover current account deficits.
The banking sector remains liquid and well capitalised. It also maintains stable profitability. Non-performing loans stood at 4% at the end of July 2026, down significantly from 11% before the pandemic.
Overall, the S&P rating reflects Albania’s continued economic progress. It also provides a positive signal for international investors, according to the assessment, highlighting economic resilience, prudent fiscal policy and a stronger external position.
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