International rating company “FitchRatings” left Georgia’s credit rating unchanged

Georgia: International rating company “FitchRatings” left Georgia’s credit rating at an unchanged “BB” level and determined the prospect as stable.

According to the international rating company ‘Fitch’, the sovereign credit rating of Georgia, which is a measure of the country’s creditworthiness and ability to repay its debts, is still maintained at the ‘BB’ level. This rating, although not the highest, indicates a moderate level of risk and a stable outlook for Georgia’s economy.

Fitch reports Georgia’s high economic growth, projecting a rate of 5.8% for 2024 and an average growth of 5% for the period 2025-2026. These projections are based on a comprehensive analysis of various economic indicators and trends, providing a reliable forecast for Georgia’s economic performance in the coming years.

Underlining the robustness of Georgia’s economic framework, the agency commends the effective fiscal policy implemented by the government and the resilience of the banking sector. The report also highlights the current low inflation and moderate government debt levels, which are notably lower than those of countries with similar ratings.

The current “BB” rating reflects the following factors:

Moderate level of government debt—Georgian government debt (39.1%) is significantly less than the median (54%) of countries with a “BB” rating.

According to the government’s strategy, the share of internal debt, which is debt denominated in the country’s currency, is gradually increasing compared to denominated debt in foreign currency. This strategy is aimed at reducing the country’s exposure to foreign exchange rate fluctuations and enhancing its ability to manage its debt, which is a positive factor for Georgia’s credit rating.

Trustworthy fiscal policy—Fitch celebrates the performance of Georgia’s budget indicators, which exceeded expectations, resulting in the budget deficit decreasing from 2.5% in 2023 to 2.1% in 2025. This index is significantly lower than the 3% margin.

High Economic Growth: The value addition and potential growth rates have increased in the country, particularly in the Information and Communication Technology (ICT), construction and tourism sectors, and migration processes. Growth is expected to be 5% in the medium term, primarily driven by local consumption and investment.

While the report paints a largely positive picture, it also underscores the potential risks. These include the internal political environment and the geopolitical situation, which have influenced the country’s outlook from positive to stable.