Irrespective of the pandemic and global economic crisis, rating agency Fitch has kept the sovereign credit rating of Georgia unchanged at BB.
Quality of governance in Georgia, macroeconomic stability and uninterrupted reforms made it possible for Fitch to keep the degree of economic and investment attractiveness of Georgia at a high level.
Rating agency believes that quality of governance, ease of doing business and attractiveness of the business environment in Georgia exceeds indicators of other countries within the BB category. Also, Fitch report evidences that speed of economic recovery in Georgia will be relatively higher than median indicators within the BB category.
Against the background of the current situation experienced globally, when a rating agency keeps the score and outlook of a country unchanged, it clearly signals at the trust in the economic policies and macroeconomic environment.
According to the report released by Fitch, significant trust and support demonstrated by donors to Georgia are among the key factors of the country rating, along with the significant progress achieved by the government towards transparency of fiscal risks related to state-owned enterprises (SOEs).
Fitch believes that authorities of Georgia are pursuing the prudent anti-crisis policies. Consistent and reliable policies implemented in the country ensure the resilience of Georgia towards shocks.
It is worth noting that in October-November 2020, Fitch reduced the credit rating for Armenia, while reducing the outlook for Slovakia, Belarus and Latvia.
In line with projections made by the rating agency, the economy of Georgia will grow by 4.3% in 2021, while by 5.8% in 2022. Economic recovery and commitments assumed by the government to ensure a budget deficit to decline to under 3% of GDP by 2024 will lead to the reduction of a debt volume in a medium term.
Rating agency sees no risks towards economic policies and uninterrupted implementation of reforms in Georgia.
Rating agency also highlights that by pursuing a credible policy, National Bank of Georgia (NBG) successfully maintains the macroeconomic and financial stability of the country.
It is worth noting that loyalty to the Extended Fund Facility (EFF) of the International Monetary Fund (IMF) enables a positive agenda of structural reforms to be maintained in Georgia. The IMF Program is performing well, which is clearly evidenced by the Seventh Review. It indicates the government readiness to continue the implementation of structural reforms and to ensure a sustainability of macroeconomic stability in Georgia.