Oct 31, 2018

IMF expects Georgia’s economy to grow at 5% in 2018

Quick Update

  • According to IMF mission October 29th 2018 press release, the reform program is advancing well and most of the program targets are met by the government.
  • Growth has softened recently but is expected to recover over the medium term supported by the structural reforms of the government.
  • 2018 growth projection have been revised downwards to 5.0% from 5.5% projected previously. IMF expects 4.6% growth in 2019 (4.8% projected previously). This is mostly related to the elevated uncertainties in the region. In addition, financial sector regulations announced by the NBG could reduce the growth temporarily. According to IMF, regulator should carefully weigh the short-term negative and long term positive impact of the regulation before introducing it.
  • IMF expects budget deficit to come in at 2.3% of GDP for 2018. Low fiscal deficit together with the strengthened supervision of the state–owned enterprises and enhanced revenue administration strengthens the fiscal framework in the country.