IMF optimistic about Georgia’s economic growth forecast

The International Monetary Fund (IMF) believes Georgia’s economic forecast is optimistic.

The Government has forecast a 5% GDP growth rate in 2014, and IMF 6%, respectively.

Improving the competitiveness of the country, attracting investments and creating a credible macroeconomic environment were named as tools to promote economic growth by the IMF Executive Director Menno Snel following a meeting with the National Bank of Georgia director Giorgi Kadagidze.

"We had constructive discussions about the inflation and the economic growth forecast. We positively value the monetary and the fiscal policy of the National Bank of Georgia,” Snel said.

He believed the swimming exchange rate of GEL was optimal for the long-term economic growth of the country.

"The main challenge of the country is unemployment, which is still high,” Snel said.

Meanwhile, Kadagidze thanked the IMF representative for the support the company had shown towards Georgia and believed it would continue in the future.

"IMF and World Bank are our strategic partners. We have the same cooperation [with IMF] as they have with other democratic and developed countries. We are no longer at the stage when they are setting up requests because in the past few years Georgia has performed perfectly in all target indexes,” Kadagidze said.

Later, the IMF's delegation met the Prime Minister of Georgia Irakli Garibashvili.

The Government hopes its plans to deepen ties with the European Union will stimulate investment and help economic growth.

Georgia initialled an agreement with the EU at the summit in Vilnius on November 29, and intends to sign a deal by September 2014.

Russia reopened its market for Georgian wine, mineral water and fruit this year after imposing bans in 2006.