TBILISI, Georgia, August 15. The S&P (Standard and Poor's) agency has affirmed the BB' level and stable outlook of Georgia's sovereign long-term credit ratings in both local and foreign currencies, Trend reports.
The agency's analysts stated that, in spite of Georgia's predicted economic slowdown this year, tourism, immigration, and financial flows, particularly from Russia, will continue to support higher real GDP growth at a rate of 6.1 percent.
The country's GDP increased by 10.1% in 2022, according to S&P.
This rate is predicted to fall to 4.5 percent and 4.2 percent in 2024 and 2025, respectively, before increasing by 4.3 percent in 2026, according to the agency's prediction.
Besides, the forecast includes an inflation decrease of around 2.4 percent in 2023, from 11.9 percent in the previous year, and an increase to 3.2 percent in the following year.
Furthermore, S&P predicted a stable inflation level of around three percent in 2025–2026.
At the same time, the agency emphasized the preservation of negative risks to the rating, including threats to financial flows, a challenging macroeconomic environment in external markets, and the long-term possibility of weakening institutional control and balance mechanisms.
The stable forecast has reflected Georgia's sustained economic growth, as highlighted in the release, along with more favorable values in fiscal policy and the balance of payments, which, according to S&P's forecast, will be supported throughout the next year.