FITCH ratings says Armenia and Georgia advancing in terms of reducing budget deficits
ARKA, 23.12.2011Armenia and Georgia, whose ratings are set at "BB-" forecast "Stable," are advancing in terms of reducing their budget deficits. Both countries benefited from the support by international financial organizations during the crisis period but they face a more difficult problem of reducing the factors of external vulnerability,” Fitch Ratings said in a report on the forecast for Europe’s developing countries for 2012.
The report predicts economic and financial deterioration for the Euro zone that will entail weaker economic growth, higher financial vulnerability and a number of negative rating actions in the European countries with developing economy.
"Most countries in the region have secured further reduction in their budget deficits in 2011 with aggregate level of budget deficits in countries of Eastern Europe falling to 1.4% of GDP from 4% in 2010," the report says.
According to Fitch Ratings, 13 out of 19 rated countries l carry out further deficit reduction in 2012, but the pace of improvement will be constrained due to the slowdown. The combined deficit of these countries will increase to 2.1% of GDP, due to higher levels of deficit in Turkey and Russia. The report predicts also that ratio of debt to GDP in some sovereign issuers in Eastern Europe will rise in 2012 to 32% of GDP.-0-
