Galt & Taggart economist Lasha Kavtaradze says Georgia’s sovereign credit rating could be upgraded next year if economic conditions remain stable. Speaking on TV program Business Morning, he discussed the latest assessment by Fitch Ratings, which upgraded Georgia’s outlook from stable to positive on October 30 while maintaining its rating at BB.
Kavtaradze said the positive outlook revisions by Fitch and S&P Global Ratings were encouraging. He noted that Georgia would need to reach BB+ and then BBB- to enter investment-grade territory. Among the factors supporting a potential upgrade, he highlighted record-high international reserves and an improving current account balance, which is expected to strengthen further this year.
Other positive indicators include declining dollarization, lower government debt and a contained budget deficit. Deposit dollarization has fallen by 10 percentage points since January 2025 to 43%, its lowest level on record. The budget deficit stood at 1.4% of GDP last year and is expected to remain around the same level this year and next.
According to Kavtaradze, if Fitch’s economic forecasts and these macroeconomic trends hold, and no major geopolitical or external shocks occur, Georgia could see its sovereign credit rating upgraded in 2027.
