International rating agency Fitch published a new assessment of Georgia's sovereign credit rating. Fitch has kept the rating unchanged at the BB level, and the expectation of the country's credit rating is also unchanged and it remains "positive". At the same time, the organization predicts a 6.9% economic growth in the country during 2023, which is 3.4 percentage points higher than the 4.5% forecast published in January.
Buoyant remittances and tourism revenue, boosted by migrant spending, narrowed the current account deficit by 6.4pp in 2022 to 4.0% of GDP, and to 3.2% in 1Q23. Strong net FDI of 6.7% of GDP in 2022 and near 6% (annualised) in 1Q23, and a sharp rise in money transfers from Russia contributed to 13% appreciation of the lari against the US dollar over the last year. National Bank of Georgia (NBG) has continued to intervene to limit the appreciation, and international reserves rose to USD5.1 billion at end-June, from USD3.9 billion a year earlier.
Fitch focuses on the quality of governance in the country, the organization notes that Georgia is currently waiting for the EU candidate status, for which it is necessary to fulfill 12 priorities. According to the organization, the position of the Georgian government in the direction of relations with Russia has caused tension in relations with the West.
Fitch still believes that Georgia's economic activity is largely driven by migrant spending.
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One US dollar trades at GEL 2.6959
26/12/2025
