Fitch Ratings has affirmed Georgia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB’ with a Positive Outlook.
The rating is supported by Georgia’s strong governance and economic development indicators relative to the ‘BB’ medians, its credible macroeconomic and fiscal policy framework, moderate level of public debt, and sound banking sector.
Based on the report, Fitch estimates growth of 5% in 2024 and 5.1% in 2025. Strong base effects, and a strong lari led to inflation falling to 0.4% as of end-2023 (National Bank of Georgia (NBG) target: 3%). Fitch expects annual average inflation to remain within the NBG’s target in 2024-25.
In December 2023, the European Council granted Georgia EU candidate country status, representing an important step in the accession process. Negotiations will now proceed over nine priority areas that the EU has identified for Georgia, including progress with judicial reforms, ‘de-oligarchisation’, and media freedoms.
