Georgia to continue to benefit from strong governance
Baku, Azerbaijan, September 20
By Tamilla Mammadova – Trend:
Georgia will continue to benefit from strong governance, high growth potential and moderate debt burdens, as well as from the resilience of the economy to external shocks and geopolitical challenges, Trend reports referring to Moody's international rating agency.
Moody's affirmed Georgia’s long-term issuer ratings in the national and foreign currencies at “Ba2”.
According to the agency, the outlook remains “stable”. A stable outlook indicates that the risks for Georgia’s rating are balanced.
"The government’s reforms will continue to support economic growth and sustainability, in particular through diversification of economic activity and exports, increased domestic savings and investment efficiency,” Moody's analysts said.
The report noted that domestic political consensus will contribute to adherence to economic and tax reforms, and reduce risks in the banking sector, which are expressed in a high level of dollarization and a large current account deficit.
According to the agency, Georgia’s constant desire for reform in cooperation with the International Monetary Fund (IMF) has led to the creation of strong foundations of macroeconomic stability and a favorable business environment in the country.
"The reform process continues, and the authorities are focused on developing the domestic capital market and mobilizing local savings to finance investment needs and reduce the country's balance of payments deficit," the agency said.
At the same time, the report says that monetary policy is still focused on inflationary risks.
Moody's expects Georgia’s public debt burden to remain relatively stable over the coming years, at around 46 percent of GDP.