OREANDA-NEWS. November 24, 2016.  End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
  • Georgian economy has shown resilience and continues to recover from the external shock, although at a slower pace than initially envisaged
  • Real GDP growth is now estimated at 2.7 percent in 2016, and is projected to pick up to 4 percent in 2017
  • The authorities plan a comprehensive package of structural reforms, including those to mobilize domestic savings, diversify the economy, and expand the use of the lari in the economy

An International Monetary Fund (IMF) team, led by Mercedes Vera-Martin, visited Tbilisi November from 15 to 22, 2016, to hold technical discussions on recent economic and financial developments and the authorities’ economic plans over the medium term. At the conclusion of the visit, Ms. Vera-Martin issued the following statement:

“In the context of subdued global growth, the Georgian economy has shown resilience and continues to recover from the external shock, although at a slower pace than initially envisaged. Real GDP growth is now estimated at 2.7 percent in 2016, with average inflation at 2 percent. For 2017, economic growth is projected to pick up to 4 percent supported by investment, while inflation is projected at 3 percent.

“The IMF mission discussed with the Georgian authorities their medium-term plans, including the upcoming budget plan and structural reforms. The authorities aim to put in place an ambitious infrastructure program to promote trade and tourism while preserving medium-term fiscal sustainability. The authorities also plan a comprehensive package of structural reforms, including those to mobilize domestic savings, diversify the economy, and expand the use of the lari in the economy. In addition, exchange rate and financial policies will continue to focus on maintaining a flexible exchange rate and preserving a sound financial system, enhancing the resilience of the economy to external shocks. These reforms are needed to boost medium-term growth, improve living standards, and create jobs.

“The IMF team looks forward to continuing its engagement with the authorities in the coming months and would like to thank the government, the National Bank of Georgia, development partners and private sector representatives for the open and constructive discussions during the visit.”