“Georgia’s fiscal and monetary policy frameworks remain comparatively prudent within the regional context, underpinned by past structural reforms that have supported macroeconomic stability and an improved business environment,” the National Bank of Georgia (NBG) said based on the report of S&P Global Ratings.

According to the report, foreign exchange reserves have rebounded sharply over recent months, rising by approximately 38% year-on-year to a record high of approximately US$6.2 billion in December.

“The accumulation reflects a combination of factors, including net foreign exchange purchases by the National Bank of Georgia (NBG) totaling US$2.4 billion, valuation gains on gold holdings, stronger tourism receipts and money transfer inflows,” reads the report.

S&P Global Ratings remarks that Georgia’s banking system remains profitable, well-capitalized, and maintains strong liquidity buffers, robust credit growth, and prudent supervisory oversight.

Asset quality remains strong, with nonperforming loans remaining low at 2.6% in November 2025, reflecting continued credit expansion and conservative underwriting standards.

“In our view, strong supervisory capacity, solid corporate governance, and a high degree of transparency support Georgia’s effective banking regulation that is broadly aligned with international standards,” reads the report.

According to S&P Global’s forecast, inflation will average 3.5% in 2026, while the Georgian economy will grow by 5.4%.