Deputy Finance Minister: Moody's expects Georgia's fiscal stability to be “firmly maintained”

Georgian Deputy Finance Minister Mirza Gelashvili on Wednesday said the international agency Moody's expected the country's fiscal stability to be “firmly maintained”, ensuring the maintenance of a low level of government debt and its downward trend.

He said reduction of the vulnerability of the Georgian economy to geopolitical risks was the “main reason” for the agency's raising of the outlook of the sovereign credit rating for the country from negative to stable on Tuesday.

• Deputy Economy Minister: Gov’t’s economic policies have led to Moody's raising Georgia’s sovereign credit rating

The strengths of the rating are traditionally high economic growth, flexibility of the economy to external shocks, high fiscal discipline, low rate of inflation and strong institutional environment. According to the agency's assessment, economic growth is expected at the level of 5.5 percent in 2024”, Gelashvili said.

The Deputy Minister said the rating agency welcomed the downward trend of the current account deficit in recent years, and noted it was “not a temporary but a structural improvement”, and a result of “high fiscal discipline” and implemented reforms.

For reference, the current account deficit has historically been one of the limiting factors for the rating”, he added.

Gelashvili also noted Moody's had confirmed the credit rating of the country remained unchanged at the Ba2 level.