Georgia’s economy is mainly based on agriculture and mining. Even if the country’s imports rely on natural gas and oil, Georgia has a great hydroelectric power capacity that provides most of the country’s energy. During the last years, Georgia has renovated most of its hydropower plants in order to reduce natural gas imports from Russia. The Georgian economy has made a good recovery after the difficulties the country went through in the ‘90ies. At the beginning of 2000, Georgia achieved a powerful GDP (gross domestic product) growth that enabled the country to benefit from good credit ratings from prestigious rating agencies.
At the government’s meeting in August 2014, the Minister of Economy and Sustainable Development, Giorgi Kvirikashvili, announced Georgia’s credit rating according to Moody’s has improved and the assessment of the country’s outlook also changed from stable to positive. The Minister declared the country’s credit rating will also improve Georgian companies confidence in the government and will also help the country in attracting more foreign investors. In august 2014, Moody’s changed Georgia’s credit rating to positive, BA3, as result of the Deep and Comprehensive Free Trade Agreement (DCFTA) between Georgia and the European Union. The agreement will allow Georgia to attract more foreign investments and increase trading activities. The BA3 rating will also maintain the country’s economic stability.
According to Moody’s, the credit rating of Georgia will serve as an incentive for foreign investors and will improve the country’s exports.
Even if Moody’s credit rating for Georgia has improved, Standard & Poor’s and Fitch agencies continue to maintain their BB- ratings for the county. According to Fitch’s, Georgia’s credit rating maintained the BB- value because the country’s economic expansion is expected to slowly decrease this year.
Standard & Poor’s rating for Georgia is the same as last year’s credit rating (BB-), but with a positive outlook for the near future. Georgia’s credit rating for transfer and convertibility (T&C), however, is stable and was assessed as BB.