International Monetary Fund projects Georgian economy to grow 7.7% in 2021, 5.8% in 2022
With these indicators Georgia will have one of the highest economic growth rates in the region of the Middle East and Central Asia. Photo: Nino Alavidze/Agenda.ge.
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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.
Georgian Economy Minister Natia Turnava said that according to the latest IMF report Georgia will maintain its leading position in terms of economic growth both in the region and in Europe for the next six years.
We will have the highest economic growth rate of 5.8%, almost 6% per year. This will allow us to overcome the negative effects of the pandemic very quickly, to overcome poverty and to make our economy more diversified and stronger", said Turnava.
As for Georgia's neighbouring countries from the same region, the IMF forecast the Armenian economy will grow 6.5% in 2021 and 4.5% in 2022 and the Azerbaijani economy will grow 3% in 2021 and 2.3% in 2022.
The Turkish economy is projected to grow 9% in 2021 and 3.3% in 2022, while the Russian economy will grow 4.7% in 2021 and 2.9% in 2022.
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 Georgian economy is expected to grow by 8.5% in 2021 driven by an expansion in agriculture, industry, and services and the gradual lifting of restrictions imposed due to the coronavirus disease (Covid-19) pandemic, the Asian Development Bank (ADB) said in its annual flagship economic publication the Asian Development Outlook 2021 Update.
Global ratings agency Moody's expects the Georgian economy to grow by 7.3% in 2021, following a 6.2% contraction in 2020, 'driven by the collapse of the tourism sector and the domestic impact of lockdowns and movement restrictions in the wake of the pandemic', says Moody's.
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 Institute for Development of Freedom of Information (IDFI) says Georgia’s 2022 state budget draft makes ‘no significant changes’ to bureaucratic expenditures. The organisation explains that despite the 17 mln. GEL increase in labour compensation, ensuring fair and competitive wages for state employees remains ‘problematic.’
Georgian Finance Minister Lasha Khutsishvili has said that the country expects 6% economic growth in 2022, nominal gross domestic product (GDP) amounting to 65 billion GEL (about $20.7 b. / €18.21 b.), while GDP per capita will exceed $5,500 by the end of next year. Khutsishvili asserts that Georgia will ‘fully’ recover to pre-pandemic economic levels and maintain a ‘high’ rate of economic growth.
World Bank Vice President for Europe and Central Asia (ECA) Anna Bjerde has stated that many reforms particularly in human capital development and formation of a more green and digitised recovery will be ‘very promising for Georgia in the years to come.’
The Georgian Ministry of Finance has started negotiations with the International Monetary Fund (IMF) over the launch of a new three-year programme. Finance Minister Lasha Khutsishvili has met the IMF mission chief James John to discuss economic conditions and projected market reforms in Georgia.
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.