MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

The rating agency S&P maintained Georgia’s sovereign credit rating and outlook unchanged at “BB” with a stable outlook.

S&P notes that the key factors for Georgia’s rating are high and sustainable economic growth, prudent macroeconomic policy, a moderate level of government debt, increasing foreign currency reserves, a strong banking system, and a relatively strong economic policy framework.

In its release, S&P focuses on the country’s macroeconomic stability and high economic growth, on the basis of which the rating agency increased its economic growth forecast for 2025 to 7,1% (the previous forecast was 5,7%). The rating agency’s expectations are also positive regarding fiscal parameters and the current account deficit. The release emphasizes macroeconomic stability, improved external inflows and foreign currency reserves, infrastructure projects supporting economic growth, highly diversified economic growth, a strong banking sector, and resilience to external shocks.

According to the agency’s release, the key factors determining Georgia’s rating are high and sustainable economic growth, prudent macroeconomic policy, a moderate level of government debt, an increase in foreign currency reserves, a strong banking system, and a relatively strong economic policy framework. The rating agency also highlights the accessibility of concessional financing from international financial institutions.

The agency notes that despite challenges, the country shows high economic growth. According to data from the first 5 months of 2025, economic growth was 8,8%. Accordingly, against the background of positive trends and macroeconomic stability, S&P increased the economic growth forecast for 2025 to 7,1%. According to sectors, economic growth is diversified, which is facilitated by private consumption and increased economic activity in the tourism, transport, information, and communication sectors.

In addition, S&P’s release explicitly emphasizes macroeconomic stability and a prudent fiscal and monetary policy.

The rating agency’s expectations are also positive regarding fiscal parameters and the current account deficit. Specifically, according to the agency’s assessment, the budget deficit will be at the level of 2,5% of GDP in 2025, public debt will stabilize at 34% in the medium term, and the current account deficit will decrease to 4,1% in 2025 (from 4,5% in 2024). The current account deficit will be mainly financed by stable net foreign direct investment, especially in the energy, infrastructure, and tourism sectors. The state will also use concessional financing from international financial institutions to facilitate the implementation of priority infrastructure projects.

S&P also notes that Georgia’s external inflows have improved significantly, and the National Bank is successfully restoring foreign exchange reserves. This progress significantly strengthens the country’s sustainability and ability to cope with external shocks.

Georgia’s banking sector remains a strong factor in the country’s economy. The rating agency believes it is well-capitalized, characterized by high profitability and a high level of liquidity.