Moody's: Georgia’s economy will grow 3.5% in 2015

Moody's outlook remains stable for Georgia despite the tense economic situation in the region. Photo by Z. Shamatava., 13 Mar 2015 - 18:15, Tbilisi,Georgia

Georgia’s economy will grow by 3.5 percent in 2015, reports global rating agency Moody's.

Today Moody's published a report of Georgia’s sovereign rating, to which Georgia’s Finance Minister Nodar Khaduri arranged a special briefing to announce this news.

Khaduri positively assessed the fact that despite the tense economic situation in the region, Moody's retained its stable outlook on Georgia’s sovereign rating, at ‘BB-’. The outlook still remained ‘positive’.

The report stated three main factors will cause economic growth in Georgia. These are:

  • Solid economic growth trend and perspectives;
  • Progress in developing political-economic and social initiatives; and
  • Effective fiscal and monetary policy.

"As it is written in the report, signing the Deep and Comprehensive Free Trade Area agreement with the EU is a very supporting factor for Georgia as the country will be closer to European standards,” said Khaduri.

"It will also help the country to attract more Foreign Direct Investments (FDI) and develop its export potential. This will support the strengthening of Georgia’s international position in the mid-term period, as the report claims,” Khaduri said.

The report also noted the volume of Georgia’s external debt was low and looking ahead, only external factors could worsen Georgia’s rating.

As for Georgia’s neighbouring countries, Moody’s latest ratings had worsened for Russia, Armenia and Ukraine. The ratings for Azerbaijan and Moldova have not been published yet.

Moody's is an essential component of the global capital markets, by providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets.