International Monetary Fund projects Georgian economy to grow 7.7% in 2021
The IMF statement reads that the Covid-19 crisis took a heavy toll on the Georgian economy, but the recovery 'has recently gained impressive momentum'. Photo: Nino Alavidze/Agenda.ge.
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The International Monetary Fund (IMF) projects the Georgian economy to grow 7.7% in 2021, 'a significant upgrade from just a few months ago, which implies that output will exceed its 2019 level this year', reads a concluding statement of the IMF staff at the end of an official visit in Georgia.
The IMF statement reads that the Covid-19 crisis took a heavy toll on the Georgian economy, but the recovery 'has recently gained impressive momentum'.
Monthly estimates suggest a strong rebound in the second quarter of 2021 with growth now expected to reach 7.7% for the year. Robust growth in remittances and exports, and early signs of a faster than expected rebound in tourism have supported the recovery and should contribute to a narrowing of the current account deficit compared to its elevated 2020 level", says the IMF.
However, the IMF adds that high inflation is expected through the end of the year, before declining rapidly in 2022.
Also the IMF statement mentions that 'significant downside risks remain and contribute to an outlook that is more uncertain than usual'.
The authorities have made commendable progress in securing vaccine supplies, but more will be needed, and vaccinations have to accelerate substantially to ensure that more than half of the population is vaccinated by the end of the year. New Covid-19 variants or vaccination delays could derail the recovery by requiring new lockdowns and reducing external demand, underscoring the paramount importance of controlling the pandemic", reads the statement.
Georgian Prime Minister Irakli Garibashvili responded to the IMF's recent forecast for the Georgian economy and said that the IMF revised 2021 growth outlook from 3.5% to 7.7%.
We must do everything we can to maintain this positive, strong pace", said Garibashvili at today's government meeting.
He added that according to the preliminary data the economic growth reached about 15%-18% in June and 'in the end, it turns out that our country's economy will grow by about 12% in the first six months of 2021'.
Garibashvili once again called on the local population to get vaccination against the Covid-19, concerning the rising number of coronavirus cases registered in the country. He said that 'our economy can no longer withstand the closure'.
Georgian Economy Minister Natia Turnava said that the revised outlook of the IMF ‘enabled us to increase the current budget by more than a billion lari, which is an additional resource for our various programmes, social spending and infrastructure projects’.
Georgian Prime Minister Irakli Garibashvili projects the Georgian economy to grow 7.7% this year, while the nominal gross domestic product (GDP) will amount to 57.2 billion GEL (about $18.13/€15.27 bln). Last month Garibashvili stated that in a pessimistic scenario the Georgian economy was expected to grow 7% while in an optimistic scenario it would grow more than 10% this year.
The estimated real gross domestic product (GDP) growth rate in May 2021 amounted to 25.8% year-on-year and 11.5% in January-May of 2021 year-on-year, show preliminary data from the National Statistics Office of Georgia (Geostat).
Georgian Finance Minister Lasha Khutsishvili claims Georgia will be a country whose economy will recover one of the fastest in the post-pandemic period. "There are many factors that actually give us the opportunity to say that the process of economic recovery this year will be fundamentally different", Khutsishvili said.
The estimated real gross domestic product (GDP) growth rate in April 2021 equaled 44.8% year-on-year and 8.1% in January-April of 2021 year-on-year, show preliminary data from the National Statistics Office of Georgia (Geostat).
Georgian Prime Minister Irakli Garibashvili called the new daily rate of coronavirus infections alarming and stated that Georgia will not endure another lockdown earlier today before the beginning of the government session.
The Parliament of Georgia has approved an updated state budget of Georgia which is now planned with a 7.7% economic growth forecast instead of 3.4%. In addition, the deficit has been lowered from 7.6% to 6.9% and the government's debt has been lowered to 54.6%.
The estimated real gross domestic product (GDP) growth rate in June 2021 equaled 18.7 per cent year-on-year and 12.7 per cent in January-June of 2021 year-on-year, the preliminary data of the National Statistics Office of Georgia (Geostat) show.
Following a 'much-improved' macroeconomic baseline, Fitch Ratings has revised the outlook on Georgia's long-term foreign-currency issuer default rating (IDR) to stable from negative and affirmed the IDR at 'BB'.
The International Monetary Fund (IMF) has approved a general allocation of Special Drawing Rights (SDRs) equivalent to $650 billion of which Georgia will receive SDR 202 million which is equivalent to $286 million. IMF Managing Director Kristalina Georgieva said that this is a historic decision and the largest SDR allocation in the history of the IMF and ‘a shot in the arm for the global economy at a time of unprecedented crisis’.
The 2022 state budget of Georgia has been planned with a 6% economic growth forecast, announces the Ministry of Finance of Georgia. The ministry says that tax revenue will be 23.5% of the gross domestic product (GDP) and the budget deficit will be 4.3% of GDP next year.
The International Monetary Fund (IMF) projects the Georgian economy to grow 7.7% in 2021 and 5.8% in 2022, reads the latest report titled World Economic Outlook: Recovery During a Pandemic. With these indicators Georgia will have one of the highest economic growth rates in the region of the Middle East and Central Asia.
Georgia and the International Monetary Fund (IMF) have reached a deal on a $289 million programme for macroeconomic and financial stability of the country, the IMF mission chief James John announced on Friday.