IMF Predicts Georgia's Economic Growth Will Be 4.6% in 2019

After completing a visit to Georgia, the International Monetary Fund (IMF) predicts that Georgia’s economic growth will be 4.6% this year.

The IMF commended the Georgian authorities to advance structural reforms and stressed the need for continued efforts to promote inclusive growth and higher economic resilience to external shocks.

“The authorities introduced measures to limit household indebtedness and revised the fiscal rule. They are also progressing toward a new insolvency law, a more automated VAT refund system, and a strengthened banking resolution framework,” the statement reads.

Significant infrastructure investment is expected to compensate for weaker external demand and slower credit growth. Scaling up infrastructure expenditure will need to be accompanied by improved project selection and management,” the IMF said.

The team added that “current account deficit is projected at around 8% of GDP, owing to still-robust growth in exports and remittances.”

The representatives of the IMF also noted that the Georgian banking sector remains well capitalized, liquid, and profitable.

The IMF team was led by Mercedes Vera-Martin and they visited Tbilisi February 20-26, to discuss recent economic and financial developments and progress with structural reforms. 

 By Thea Morrison