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Moody’s upgrades Georgia’s sovereign rating outlook to stable, keeps Ba2 rating

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Rating agency Moody’s on Tuesday upgraded Georgia’s sovereign credit rating outlook from negative to stable while maintaining the rating at Ba2, citing the country’s strong economic and fiscal resilience amid geopolitical challenges.

Moody’s report emphasised that strong economic performance has helped mitigate risks from external geopolitical tensions.

In its latest assessment, Moody’s highlighted Georgia’s robust economic indicators, effective cooperation with international partners, and prudent fiscal and monetary policies as key factors supporting the improved outlook.

The agency expects Georgia’s economy to grow by 6.4% in 2026 and 5.5% in 2027, driven by consumption, investment, and a rapidly expanding tourism sector with increasing diversification of visitors.

Government debt is projected to continue declining towards 30% of GDP.

Moody’s notes that consumption and investment will be the drivers of economic growth, which, together with prudent debt management, will support fiscal health.

Tourism is also highlighted as a growth driver, which is increasing significantly and is characterised by the diversification of visitors.

The agency positively evaluated Georgia’s strategic role as a transport and logistics hub in the Middle Corridor, which supports trade diversification and investment attraction, along with ongoing reforms in fiscal and monetary spheres.

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image Producer Price Index for Industrial Products up by 5.1 per cent in July annually - Geostat

20.08.2026.16:47

In July 2026, the Producer Price Index for Industrial Products decreased by 0.7 percent compared to the previous month, while compared to July 2025, the index increase amounted to 5.1 percent, the National Statistics Service of Georgia (GeoStat) reported.

According to GeoStat, the prices for mining and quarrying decreased by 2.0 percent compared to June 2026, resulting in a -0.15 percentage point contribution to the overall monthly PPI change.

In the same period, the prices for manufactured products decreased by 0.3 percent, contributing -0.26 percentage points to the monthly index change. Besides, the prices decreased for electricity, gas, steam and air conditioning by 3.1 percent, contributing -0.31 percentage points to the monthly index change.

The annual PPI rate was mainly affected by price changes for the following products:

• Mining and quarrying: the prices were 14.4 percent higher, contributing 0.96 percentage points to the overall annual index change. Within the group, the prices were higher for the subgroup of metal ores (16.1 percent);

• Manufactured products: the prices increased by 5.2 percent, contributing 4.12 percentage points to the overall annual index increase. There was a notable increase in the prices for food products (6.6 percent) and basic metals (11.0 percent);

• Electricity, gas, steam and air conditioning: the annual price decrease amounted to 1.7 percent, which contributed -0.18 percentage points to the annual index change;

• Water supply, sewerage, waste management and remediation services: the annual price increase amounted to 5.7 percent, which contributed 0.18 percentage points to the annual index growth.

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