Global rating agency Fitch Ratings is keeping Georgia’s sovereign credit rating at ‘BB’ with a stable outlook.
Fitch notes that Georgia’s sovereign credit rating is more stable than the median of the BB category countries with its high quality governance, attractive investment, business environment and macroeconomic stability in the face of regional shocks.
The report writes about the increased export of Georgia to major partner countries (Azerbaijan, Russia and Turkey) which was due to diversification of the export market and the depreciation of the Georgian lari.
Fitch writes that the current account deficit (a measurement of a country’s trade in which the value of the goods and services it imports exceeds the value of the products it exports) hit its historical minimum and was 4.5 per cent of the gross domestic product (GDP).
Fitch forecasts 4.1 per cent deficit of the current deficit for 2020, while it forecasts 4.2 per cent deficit for 2021.
Fiscal deficit (a shortfall in a government’s income compared with its spending) was 2.2 per cent in 2019, notes the report adding that it is less than median of the BB category countries.
The report notes that the Georgian banking sector is healthy and well capitalised.
Fitch Ratings Inc. is an American credit rating agency. It is one of the “Big Three credit rating agencies”, with Moody’s and Standard & Poor’s.