Fitch Ratings: Fitch expects annual average inflation to remain within the NBG's target in 2024-25

International rating agency Fitch Ratings published a new assessment of Georgia's sovereign credit rating.

The National Bank of Georgia disseminated information about the above.

According to the National Bank, Fitch Ratings has affirmed Georgia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Positive Outlook.

"The Fitch Ratings report focuses on factors that contribute to maintaining a positive outlook - strong governance, significantly higher economic growth, lower inflation, a reliable macroeconomic and fiscal policy framework, a strong banking sector, etc. The international rating agency also emphasizes the perspective of accession to the European Union and the importance of granting the candidate status to Georgia," reads the information released by the National Bank.

In addition, as mentioned in the report, strong base effects, and a strong lari led to inflation falling to 0.4% as of end-2023 (National Bank of Georgia (NBG) target: 3%).

"Fitch expects annual average inflation to remain within the NBG's target in 2024-25. The NBG cut rates by only 150bp in 2023 to 9.5%, and is set to remain cautious about the pace of loosening, in order to avoid spurring excessive credit growth (17.3% nominal as of November 2023),” reads the Fitch Ratings report.