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Georgia’s Credit Outlook Constrained By Geopolitical Sensitivities, Institutional Risks

*Average of the following five World Bank Worldwide Governance Indicators: Control of Corruption, Voice and Accountability, Rule of Law, Government Effectiveness, Regulatory Quality. X-axis is centred at mid-point of each calendar year. Source: World Bank, Scope Ratings.

Domestic Institutional Risks Weigh On Credit Outlook

As the Georgian Dream government seeks to square the circle – seeking closer ties for security reasons with the European Union and, in parallel, with Russia – an increasing influence of Russia within policy making elevates institutional challenges.

Recent elections have brought accusations of vote rigging. The October-2024 general elections are fast approaching, and a rift between the government and the nation’s pro-EU president Salomé Zourabichvili weighs on the coherence and credibility of EU-accession…
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