Finance Minister to Bloomberg: Georgian growth above target will aid lari

Bloomberg, a privately held financial software, data, and media company headquartered in the United States has published an interview with Georgian Finance Minister Dimitry Kumsishvili, in which he talks about the country’s economic developments.

In his interview with Bloomberg, Kumsishvili said economic growth may exceed five percent in 2017 thanks to tax cuts and planned infrastructure spending, helping to ease pressure on the nation’s ailing currency.

The Minister believes there are "realistic” prospects of beating the government’s 2017 target of four percent growth and meeting the World Bank’s forecast of 5.2 percent. An additional 600 million GEL (about $224 million/€207 million*) in infrastructure spending, a free-trade deal with China and the removal of taxes on reinvested company profits will all help to boost the economy, he said.

The article says Georgia is fighting to overcome the economic impact of Russia’s longest recession in two decades and the weakening of the Turkish Lira amid political turmoil following July’s failed coup attempt. Russia and Turkey are Georgia’s neighbours and top two trading partners.

*Currency conversions reflect National Bank of Georgia values as of today.

Read full story here: www.bloomberg.com