Finance Minister welcomes IMF’s raising of economic growth forecast for Georgia
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Georgian Finance Minister Lasha Khutsishvili on Thursday welcomed an increase in the International Monetary Fund’s estimation of 2023 economic growth for Georgia to five percent, and the institution’s allocation of about $40 million in support of the country.
Khutsishvili said the IMF Mission had highlighted “stability” of the Georgian economy and its “strong” performance driven by “robust tourism, transit trade, and financial inflows triggered by Russia’s war in Ukraine, and supported by prudent macroeconomic policies”.
As you know, the Ministry of Finance of Georgia has planned the 2023 budget with a five percent economic growth forecast [...] It is important that the debt level in the country remains at a safe level - below the 40 percent limit. Also, the fiscal deficit is returning to the limit defined by the fiscal rules, below three percent and is set at 2.8 percent this year”, Khutsishvili said.
In comments on the $40 million support package, the Minister clarified the amount approved within the IMF programme was a “buffer” fund, with no plans by the Government to request the money.
The Minister said the IMF’s Stand-By Arrangement programme was mainly concentrated on reforms and changes in the “fiscal and monetary direction”.
He highlighted Georgia had “fully met” the criteria required for the completion of the Fund’s second review, adding “various structural target indicators were fulfilled in the direction of tax policy and administration, state investment management, fiscal risks and financial supervision”.
James John, the Mission Head of the International Monetary Fund, on Thursday told Georgian media the country’s Government and central bank were making “satisfactory efforts” to comply with the international sanctions placed on Russia for its invasion of Ukraine.
The International Monetary Fund on Thursday announced the completion of the second review under the Stand-By Arrangement with Georgia, with the process making about $40 million in support available to the country.
The current economic situation in Georgia was discussed on Friday in a meeting between the Georgian Prime Minister Irakli Garibashvili and James John, the Deputy Chief of the International Monetary Fund.
Georgian Economy Minister Levan Davitashvili on Friday met International Monetary Fund mission head James John to assess the country’s compliance with the terms of a $40 million standby loan issued by the IMF.
Archil Mestvirishvili, the Vice President of the National Bank of Georgia, on Thursday said the domestic financial sector was ensuring enforcement of the international sanctions on Russia for its invasion of Ukraine “very well”.
The European Bank for Reconstruction and Development expects the economic growth in Georgia to moderate to five percent in 2023 and 5.3 percent in 2024.
Archil Mestvirishvili, the Acting President and Vice President of the National Bank of Georgia, on Wednesday said evaluations of Georgia's investment environment by international rating agencies boosted investors' and foreign organisations' confidence in the domestic economy.
The Georgian economy grew 7.5 percent in April and 7.3 percent in the first four months of 2023, data published by the National Statistics Office of Georgia on Wednesday shows.
Georgian Prime Minister Irakli Garibashvili on Friday presented an annual report of the Government’s work to the Parliament, where he said the Georgian economy had grown by 7.5 percent over the first five months of 2023 and called the result “quite a strong achievement” amid the Russia-Ukraine war and the “threat of use of nuclear weapons”.
The gross external debt of Georgia increased by $260.3 million during the second quarter of 2023 and stood at $24.2 million as of June, the National Bank said in its latest update of national debt statistics on Friday.