International Monetary Fund forecasts 5% economic growth in Georgia in 2021

The International Monetary Fund (IMF) has upgraded its World Economic Outlook which now says that the Georgian economy will grow five per cent in 2021 and the average growth rate will be 5.5 per cent in 2021-2025. 

According to the new forecast of the International Monetary Fund, the Georgian economy will grow at the highest rate in Europe and the region in 2021-2025", says the Finance Ministry of Georgia.

The IMF says that the nominal GDP per capita in terms of purchasing power parity will exceed $20,000 for the first time in 2024 in Georgia, and $21,000 by 2025. According to the nominal purchasing power parity growth rate per capita in 2020-2025, Georgia ranks 11th in the world.

After 2020, the debt of the Georgian government will begin to decrease. Georgia is one of the countries that will be able to effectively reduce the increased debt in the medium term", says the Ministry of Finance.

The IMF outlook says that debt reduction is facilitated by the fact that Georgia attracted international funding in 2020 and managed to accumulate 'significant fiscal buffers', which will reduce the need for financing in the coming years.