Fitch Rating will submit assessment of Georgian economy on September 30. Georgia’s outlook by Fitch has become known to GBC.
According to Richard Grieveson, Director of Eastern Europe Sovereigns at Fitch Ratings, pressure over the foreign exchange reserves is among the negative factors impacting the rating. Grieveson explains that internal and regional political climate has an impact over the economic policy, regional growth and stability.
Top Manager of Fitch names decline trend of dollarization coefficient among the positive events. However he notes, that high rate of dollarization hampers monetary policy effectiveness and puts the banks in the vulnerable position towards the external shocks.
Fitch names foreign finances as the basic weakness of Georgia, but he considers the trend as stabile. Grieveson noted about the reduction of political risks from Russia while talking to GBC, which is still sustained with covered hidden form.
As for the macro economic forecast, Fitch expects that Georgian government debt against GDP will be 41.3%, while the index has been 41.5% in 2015, while the rate will be reduced further by 2017 and it will amount to 40,8%.
To remind, Fitch revised Georgia’s Outlook to “Stabile”; Affirms at ‘BB-‘ by April 1.