World Bank: Georgia should Make Focus on Economic Growth Promoting Reforms

The election period is over and the World Bank (WB) suggests government of Georgia to carry out structural policy. First of all, WB makes focus on the 2017 state budget.

The WB has revised Georgia’s economic growth forecast. The organization forecasts 3.4% economic upturn in 2016, while in 2017 the figure is set under 5%. The WB considers the high deficit of the current account to be a major challenge, as well as the poverty level and unemployment.

Education system reformation is one of the recommendations for unemployment level reduction. As for available growth in budget deficit, the bank has not made a forecast for 2017, but amid planned tax reforms, it suggests that the government should balance expenditures and revenues.

“The election period is over in Georgia, and now we should resume our working process. First of all, it is necessary to correctly plan the 2017 budget; the fiscal policy must be steady, and Georgia should put focus on structural policies and reforms to ensure an economic upturn.

“We have revised economic growth prognosis. The 2017 growth will be under 5%. We expect economic growth to advance thanks to better external factors and the ongoing reforms.

“In the doing business rating, Georgia has recorded very good positions close to Germany. Georgia plans to reform tax system and we are waiting for outcomes. It is important to balance expenditures and revenues, create equal conditions for everybody and Georgian society should have perception of this equality.

“A stable exchange rate is particularly important, because the country greatly depends on external relations, while external situation is weak and unforeseeable. We say inflation is maintained at low benchmark and this signifies good steps are made for halting exchange rate devaluation,” WB senior economist Genevieve Boyreau said. (cbw.ge)