MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

Rating agency S&P Global left Georgia’s sovereign credit rating unchanged at the BB level with a stable outlook. 

In its report, S&P focused on high economic growth, the increase in external buffers, and the strength of public finances. According to the company’s assessment, economic growth remains high, and it is expected that in the near future, the rate of economic growth will again exceed the indicators of countries with a similar rating. 

S&P forecasts that in 2026 and 2027, economic growth will be 5,4% and 4,8% respectively. The rating agency positively assessed expectations toward the country’s business environment and foreign direct investment and noted the large-scale investment by Eagle Hills. 

In its assessment, the rating company defined the strong factors that influenced Georgia’s current assessment in the rating. Specifically, the country has a strong policy framework, as well as moderate state debt, a floating exchange rate regime, and access to timely concessional financing from international financial institutions, which is reflected positively on the rating.

According to S&P’s assessment, the parameters of effective fiscal and monetary policy are partly due to structural reforms, which have also improved the business environment. 

The rating agency’s assessments highlight the positive trends existing in terms of macroeconomic stability: inflationary pressure is gradually decreasing, international reserves are increasing significantly, the strength of the banking sector is maintained and budget indicators – the fiscal deficit and state debt – are in compliance with threshold indicators similar to the Maastricht criteria. 

S&P estimates that inflation in 2026 will equal 3,5%. In the medium term, the budget deficit will be around an average of 2,0%. 

S&P also focused on the increase of international reserves to a record level. The report also notes that such an increase in reserves has strengthened Georgia’s external buffer and increased the National Bank’s ability to respond to and manage the exchange rate in case of volatility.