Finance Minister welcomes IMF’s raising of economic growth forecast for Georgia

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.

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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”.