Fitch Ratings upgrades Georgia’s sovereign rating outlook from stable to positive, affirms BB rating

On October 30, 2026, international credit rating agency Fitch Ratings revised Georgia’s sovereign rating outlook from stable to positive, while affirming the country’s rating at BB, Georgia’s Ministry of Finance reported.

According to the assessment published by the agency, Georgia continues to demonstrate economic and fiscal resilience. The positive outlook reflects the rapid accumulation of international reserves, a low current account deficit and strong economic growth. Georgia’s rating is also supported by prudent fiscal policies, moderate government debt and a stable banking system.

Fitch notes that despite heightened geopolitical risks and high energy prices, Georgia continues to record strong economic growth, driven by investment and robust export growth. Average economic growth exceeded 8% over the 2023-2025 period. The agency expects Georgia’s real economic growth to remain higher than that of countries with comparable ratings over the medium term.

The rating agency continues to regard Georgia’s fiscal policy framework as prudent and transparent. It also points to structural reforms that contribute to macroeconomic stability and an improved business environment. The agency highlights that the budget deficit as a share of GDP remains well below the ceiling set by the fiscal rule, while public debt relative to GDP is on a downward trend. External debt consists largely of concessional loans from international financial institutions.

Fitch also highlights the rapid growth of Georgia’s international foreign exchange reserves, which reached $8.2 billion in September 2026. This development has largely been driven by an improved balance of payments, particularly a narrower current account deficit, increased capital inflows, prudent monetary policy and stronger confidence.

The agency assesses Georgia’s banking system as well-capitalized, with sector profitability, asset quality and prudent supervision maintained. It also notes a declining trend in the dollarization of deposits and loans, largely attributable to macroprudential measures implemented by the National Bank of Georgia.

According to the report, the sustained continuation and further improvement of favorable external trends over the medium term — including stronger external buffers and a small current account deficit — will be important factors in any further improvement of Georgia’s rating.