IMF positively assesses Georgia’s economic indicators
By Tea Mariamidze
Wednesday, September 18
The International Monetary Fund (IMF) mission praised the positive trend of economic indicators in Georgia - sustainability of economic growth rate, improved current account deficit and other macroeconomic parameters of the country.
The information was released by Georgian Government’s Press Office on Tuesday, saying the IMF made the statement at a meeting of Giorgi Gakharia, Prime Minister of Georgia with Mercedes Vera-Martin, IMF Mission Chief.
During the September 17 meeting, the sides discussed the economic position of the country, the performance of the Extended Fund Facility (EFF) and key financial indicators for 2020.
As noted, the focus was made on the macroeconomic indicators and structural reforms of the country.
Mercedes Vera-Martin said the economic growth trend is quite solid in Georgia.
"We find the Georgian economy to be resilient despite the deteriorating external environment. We see the growth dynamics to be quite solid,” she noted.
On his turn, Gakharia said the current close partnership with the IMF and confirmed readiness on behalf of the Government of Georgia to further extend cooperation.
He also noted that the policy of the Government of Georgia is aimed at ensuring the fiscal sustainability and economic growth of the country.
Several days ago, Ivane Matchavariani, Minister of Finance of Georgia also met the IMF mission. The Finance Minister stated that the Georgian side is to continue its policy-oriented on maintaining macroeconomic and fiscal stability expressed through the low budget deficit and safe level of public debt.
Moreover, the representatives of the IMF accentuated the positive dynamics of Georgia’s economic indicators, including the tempo of economic growth, amelioration of the current account deficit, as well as reduction of the country’s vulnerability towards external factors.
It was also noted at the meeting that continuation of the implementation of the government’s reform plan is of crucial importance for ensuring the sustainable and inclusive growth of the country.
To note, in mid-June 2019, the Executive Board of the International Monetary Fund released its findings following the Fourth Review of Georgia’s economic reform program, which is supported by a three-year extended arrangement under the IMF’s Extended Fund Facility (EFF).
There were three major findings of the report, which was, overall, largely positive with an emphasis on the role of government reforms, particularly in education, to continue moving the economy forward. First, Georgia’s economic performance remains robust with resilient growth, inflation under control, and reduced external vulnerabilities. Second, the continued implementation of the authorities’ reform agenda remains vital to ensure that growth is sustainable and inclusive. Third, comprehensive education reform needs to boost education quality and reduce skills mismatches in the labor force.
In its report, IMF says the economic performance in Georgia remained robust in 2018 and growth reached 4.7 percent, supported by external demand, inflation stayed below the three percent target, the fiscal deficit remained in line with program commitments, and the current account improved.
It added in early 2019, growth conditions were favorable, with average inflation slightly above the target reflecting increased excises.
The next visit of the IMF Mission to Georgia is scheduled for October 2019.