Irakli Nadareishvili, Deputy Minister of Economy and Sustainable Development declared, that despite the ongoing global pandemic and economic crisis, as well as the hard-geopolitical situation in the region, Fitch Ratings kept Georgia’s sovereign rating unchanged, which expressed high confidence in the country’s economic policy.
Fitch Ratings published a new report yesterday. The rating agency affirmed Georgia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. According to the Fitch Ratings, a credible and effective policy framework and stronger governance indicators relative to 'BB' peers underpins Georgia's rating. Long-standing support from official creditors have helped reduced risks to macro stability and supported financing needs. These credits strengths are balanced by significant exposure of public debt to foreign-currency (FC) risk, high financial dollarisation, and external finances that are significantly weaker than the majority of 'BB' category rated peers.
“According to Fitch’s report, Georgia's economy expanded robustly in 2021. Real GDP growth is estimated to have reached 10.6% in 2021, following a contraction of 6.8% in 2020. Economic recovery has been driven by domestic demand, strong inflows of net remittances, a partial tourism recovery, fiscal stimulus and exports growth.
All these directions will be sustained for 2022 and 2023 and the country will keep positive dynamics. As of the Fitch, Georgia's economy will expand by 5.5% and 5.3%, the country will have one of the highest economic growth in the region," Irakli Nadareishvili said.
