Standard & Poor's upgraded the prospect of sovereign rating of Georgia from “Stable” to “Positive”
By Inga Kakulia
Monday, April 15
The release issued by the company emphasized, that in case of significant economic growth and improvement of international positions by increasing the export and currency reserves the financial company is ready to boost Georgia's sovereign rating for the current year. According to the release, the improvement of the prospects of Georgia should be attributed to high economic growth, resilience to foreign shocks and institutional strengths. According to the report, the country maintained economic sustainability in 2018.
The Standard & Poor's gave positive feedback to current and planned reforms and initiatives in Georgia. The company believes that the changes will serve as an additional positive contribution to economic growth.
From the undergoing reforms the report highlighted: Development of infrastructure and prioritization of capital expenditure; Improvement of the business environment as a result of reduction of spending, including: adoption of public and private cooperation law, deposit insurance, land and pension reform; simplification of tax administration and improvement of VAT returns as well as the education reform.
The report positively evaluates the measures for responsible lending and prudential regulations as well.
According to the predictions made in the report, in 2019 growth rate of Georgia's economy will exceed the growth of other countries in the region.
The Minister of Economy and Sustainable Development, Giorgi Kobulia responded to the improvement of Georgia's sovereign credit rating in the Standard & Poor's (S & P) recent report.
According to Kobulia, this improvement means that rating growth is very close and in November 2019, when S & P will publish the follow-up report, it is possible that Georgia’s sovereign rating will increase once again.
According to the minister, “S&P” agency has not changed any ratings or prospects for Georgia since November 2011.
"The positive assessment of “S&P” is related to the fact that the agency saw high economic growth in Georgia, regardless of the ongoing recession in the region. The thought-out reform program was also noted along with the successful and well-managed monetary and fiscal policy, but of course, the primary vulnerability of our economy in foreign terms was again highlighted.
In the main trading partners of Georgia, such as Turkey, Russia and EU countries, expected the process of recession is likely to continue so that S&P will look closely at the growth in the exports, so we will give much of our attention to exporting", said the Minister of Economy and Sustainable Development.