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.