Moody’s Ratings [international credit rating agency] has completed its periodic review of Georgia’s sovereign credit profile and related issuer ratings, highlighting a stronger economic outlook and resilient fundamentals.

According to the assessment, Georgia’s economy is expected to grow by 6% in 2026, an upward revision from the agency’s previous forecast of 5.5% growth.

“Georgia’s long-term issuer rating of Ba2 reflects the country’s solid economic and fiscal foundations, which remain resilient despite ongoing geopolitical tensions… The real GDP growth averaged 7.5% in 2025, significantly outperforming the 3.6% median of peer countries. This expansion was driven by robust domestic demand, rising wages, strong performance in the services sector, and increased infrastructure spending”, - says Moody’s.

However, it highlighted ongoing structural challenges, including unfavourable demographics and low agricultural productivity. Growth is expected to moderate to around 6% in 2026, gradually converging toward a potential rate of about 5% as domestic demand normalizes.

Fiscal performance improved in 2025, with the budget deficit narrowing to 1.2% of GDP from 2.2% the previous year, supported by tax reforms. This helped stabilize public debt at 34.5% of GDP.

In the external sector, strong export growth was accompanied by rising imports. Despite a slight widening of the trade deficit, the current account deficit narrowed significantly to an estimated 2.9% of GDP, down from 5.3% in 2024, supported by increased remittances and services exports. Moody’s expects the deficit to remain near this level over the next two years, well below the 8% average of the past five years.

Foreign exchange reserves (excluding gold) are projected to increase to USD 5.6 billion in 2026 and USD 6.1 billion in 2027, up from USD 4.7 billion in 2025, supported by strong foreign direct investment inflows. The government also successfully refinanced its Eurobond obligations in January 2026 by issuing USD 500 million in bonds with a 5.1% coupon rate”, - reads the report.

Moody’s stated that Georgia’s credit profile is supported by strong economic performance (rated “baa2”), solid institutional and governance frameworks (“baa3”), and relatively low public debt with a favorable structure (“a3”).