The international agency Standard and Poor’s has left Georgia’s rating unchanged at BB with a stable outlook. The agency said this in a statement. Georgia’s ratings are constrained by the country’s relatively low income level and weak external position, which are exacerbated by its import dependence and significant external liabilities. In addition, the moderate dollarization of Georgia’s financial system somewhat complicates the transmission channel of monetary policy,” the agency’s analysts report. The rating agency cites a relatively solid political system, especially compared to other countries in the region, as well as moderate public debt and access to concessional financing from international financial institutions as positive factors. The stable outlook balances Georgia’s strong economic and fiscal performance with growing political uncertainty, which the agency believes will persist over the next 12 months.

According to Standard and Poor’s, Georgia’s GDP growth will slow to 6.6 percent this year, after recording 7.5 percent growth in 2023. However, forecasts suggest that economic growth will continue to slow: to 5.4 percent in 2025, 5 percent in 2026 and 4.9 percent in 2027. As for inflation, the rate is expected to be 2.6 percent this year, a slight increase after 2.5 percent in 2023, while it should rise to 3.3 percent next year and stabilize at around 3 percent in 2026-2027. The agency notes a negative risk to the forecast due to the volatility of the domestic political situation against the backdrop of the beginning of the electoral cycle. In fact, parliamentary elections will be held in Georgia on October 26.

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