Moody’s reaffirms Albania’s B1 rating: “Economy is stable”

21/04/2017 00:00

The international finance giant “Moody’s” confirmed the B1 rating for
Albania, with a stable perspective for the public debt, declaring that
the country has registered a strong fiscal progress in 2016.

“The improved macroeconomic situation and the fiscal consolidation of the government resulted with a strong fiscal progress for 2016, with a bidget deficit that went down at 1.7% of the GDP”, Moody’s says.

The agency says that the government’s loan last year was the lowest in two decades.

“In parallel, the strongest GDP growth and budget surplus helped the public debt to go under 71%, changing the growing trend”, the evaluation says.

Moody predicts that Albania’s debt will go lower in the years to come, thanks to a higher economic growth and the government’s fiscal policy.

“We expect the GDP to grow with 3%-4% for the 2017-2018 period, from 2% that it has been the average growth in the past year”, the article continues.

Moody’s says that Albania’s rating may improve if the country will continue with the fiscal consolidation, by reducing the debt and reinforcing the government institutions, including the judiciary. But, on the same time, the rating may get worse if the country faces an increased deficit, as result of a possible energy crisis, or due to a high bill of property compensation.

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