TIRANA (Albania), February 3 (SeeNews) – Standard & Poor's has affirmed its sovereign credit rating on Albania at B+, with a stable outlook, the country’s finance ministry said on Monday.
The estimate is based on S&P's expectation for a sustained medium-term economic growth, continued budget deficit control and public debt reduction, the ministry said in a press release, citing data from the rating agency.
The agency expects a temporary increase in the budget deficit to 2.2% of gross domestic product (GDP) this year, up from 1.9% estimated in 2019, as the government will work intensively on post-earthquake reconstruction, as well as continue to clear arrears, the ministry noted.
Budget deficit will continue to decrease gradually over the medium term, while the net public debt will fall below 60% of GDP by 2022, following the longer-term fiscal rule set out in the organic budget law for reducing public debt below 45% of GDP.
A 6.3 magnitude earthquake on November 26, the worst to strike Albania in decades, left 51 people dead and around 3000 injured.