Moody’s Reaffirms Albania’s Ba3 Rating, Forecasts 3.5% Economic Growth for 2026

International credit rating agency Moody’s has reaffirmed Albania’s sovereign credit rating at “Ba3” with a stable outlook, indicating that the country’s economic situation remains stable despite global uncertainties. The latest assessment highlights Albania’s continued economic resilience and its potential for moderate growth in the coming years.

According to Moody’s report, Albania’s gross domestic product (GDP) is expected to grow by 3.6% in 2025 and around 3.5% in 2026. This forecast shows steady economic expansion, although it is slightly lower than the Albanian government’s own growth estimate of about 3.9%. The stable outlook means Moody’s believes Albania’s financial and economic conditions are unlikely to change significantly in the near future.

One of the main drivers of Albania’s economic growth is the tourism sector, which continues to attract increasing numbers of international visitors each year. Tourism contributes significantly to service exports and stimulates related industries such as construction, transportation, and hospitality. Along with tourism, foreign direct investment (FDI)—especially in the energy and tourism sectors—is expected to support economic expansion and create new employment opportunities.

Moody’s also highlighted improvements in Albania’s public finances. The country’s public debt has been gradually declining and is projected to fall to about 51% of GDP by 2027, down from approximately 52.6% in 2025. This reduction is mainly due to economic growth and disciplined fiscal policies implemented by the government. In addition, the budget deficit is expected to remain relatively controlled, estimated at 1.8% of GDP in 2025, which is still below the government’s official target.

The report also noted that Albania’s financial sector remains stable, with manageable liquidity risks and ongoing economic reforms. These reforms are part of the country’s broader effort to strengthen governance and align with European Union standards as Albania continues its path toward EU membership. Overall, Moody’s reaffirmation reflects international confidence in Albania’s economic stability and future growth prospects.