"Unfortunately, the authorities are in a situation with little scope to stimulate the economy either through fiscal policy or monetary policy," the analysts wrote in a note on the country, to which Lusa had access.
In the analysis, Oxford Economics said that "the government will have to revise budget spending downwards in the amended budget and will have to rely on foreign direct investment flows, plus IMF disbursements, Eurobond issues and foreign aid to finance the external deficit".
According to the text, sent to clients the week after Standard & Poor's (S&P) downgraded the country's rating, Oxford Economics said "to make things even worse, the global Covid-19 pandemic and the onset of infections forced the government to impose a 15-day quarantine.
For Oxford Economics, after Fitch earlier this month and S&P later in March, Moody's is also expected to downgrade in the near future.
"It's reasonable to anticipate that Moody's usually slower will also cut the rating at a level in the coming months," concluded the analysts.