Standard & Poor’s Ratings Services published on October 10, the new ranking about Albania, a positive shift from positive to stable, by confirming the B/B ranking. S&P positive outlook about Albania comes as a result of the continuous governmental incentives for an economic growth and the efforts to shrink the country’s deficit. As for the deficit, S&P confirmed that, “The positive ranking of the Albanian economy reflects our belief that the country’s deficit will decrease by 2% of GDP in 2017. S&P has also raised its outlook on the economic growth for 2015-2016 for Albania”.
According to the report, the economic growth will come as a result of the exports increase, mainly in the manufacturing, mining and hydrocarbons sectors but an important role will play also the foreign direct investments. S&P outlook on foreign investments in Albania, predicts a boost of them in the 2015-2017 period, which will affect in the increase of exports.
The report highlights the government’s efforts on paying the outstanding depts. After implementing the pensions reform, the government is facing with structural reforms in the energy sector. The signed agreements with the World Bank and the IMF in the beginning of 2014, serve as a guarantee for the needed reforms along with the financial support, is stated in the report.
The realization of reforms in key sectors and the raise of the domestic demand will accelerate the economic growth by 3.9% in the period of 2015-2017 and as a consequence this will raise the S&P’s outlook for Albania in the next years.
News source: Ministry of Economic Development
Photo credits: Flickr / Heiko Brinkmann