Fitch raises Georgia’s outlook

Fitch Ratings has revised the Outlook on Georgia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR at 'BB'.

Fitch analysts noted that the gross international reserves increased by 37.2% from the lows of October 2024 to an all-time high of $5.6 billion at end-October 2025, equivalent to 2.8 months of current account payments (CXP).

It was noted that the improvement reflects the central bank's purchases of $1.6 billion since the beginning of the year and the impact of higher gold prices ($322 million).

"Strong tourism revenues (1-3Q25: 5.1% yoy) and money transfers (January-October 2025: 7.1% yoy), tighter reserve requirements on banks' FX deposits, and a broader trend of de-dollarisation also contributed to the increase," the latest report issued by Fitch treads.

Nevertheless, the rating agency notes that Georgia's external buffers are low relative to peers.

Fitch expects international reserves to stabilise at an average of 2.6 months of CXP in 2026-2027 (3.2 months when re-exports are excluded), although this would still be well below the current 2025 'BB' median of 4.8 months.