Fitch Solutions improves Albania’s economic rating for 2021 – Government, public sector
Albania: Fitch Solutions improves Albania’s economic rating for 2021
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“Fitch Solutions”, a well-known unit of the international rating agency “Fitch”, has published the latest risk report for the second half of 2021 for Albania. In this report, Albania’s gross domestic product (GDP) growth forecast for 2021 has been increased by 1.5 percentage points to 5.7%.
This assessment contrasts sharply with the forecast for February of the same year, when the country’s economy was expected to grow 4.3% during that year.
According to the study, the rapid and continued progress in vaccination against Covid-19 in Albania is expected to play a supporting role in the sustainable recovery of private consumption. In addition, the improvement in tax collection should bring a significant positive result in public finances.
“Fitch Solutions” predicts that European demand for Albanian products will increase, leading to an increase in exported products throughout the year. On the other hand, service exports will need more time to recover due to continued outages due to Covid-19.
As noted in the report, government funding for postponed projects and reconstruction activities related to the November 2019 earthquake and increased public investment will be crucial for this year’s economic growth.
Overall, the optimistic trends in economic growth presented in this report, combined with previous positive ratings by the rating agency “Moody’s”, although moderate, create a favorable climate for the further development of existing businesses in Albania. , encourage the opening of new businesses and also constitute an additional element of security to attract foreign investment.
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