BAKU, Azerbaijan, Feb. 14
By Tamilla Mammadova – Trend:
The International Monetary Fund (IMF) mission has praised the economic processes and structural reforms underway in Georgia, Georgian Minister of Economy and Sustainable Development Natia Turnava said, Trend reports via Georgian media.
According to Turnava, the economic growth of 2019 exceeds the initial forecast of the IMF.
“It was projected 4.6 percent, and the real growth stood at 5.2 percent,'' she said.
According to her, the IMF highlighted the achievement, which implies the improvement of Georgia's external trade balance.
''The imports have not increased, but exports grew by 12.4 percent,'' Turnava said.
Minister noted that the inflation, which was a challenge for all these months, gradually decreases.
''In general, the country is on the right path of development,'' said Turnava, adding that investors also show vast confidence in the Georgian economy.
The IMF team, led by Deputy Division Chief Ms. Mercedes Vera-Martin, visited Tbilisi to discuss recent economic and financial developments and progress with structural reforms.
"Continued prudent policies are needed to maintain the growth momentum and bring inflation down to the 3-percent target by end of 2020", said the IMF's statement issued following the visit.
According to IMF, advancing structural reforms will make Georgian economy more resilient to external shocks and improve medium-term growth potential.
"The growth outlook for 2020 remains stable, at 4.3 percent, but risks are now balanced due to higher-than-envisaged economic activity in 2019. Inflation is projected to converge to the 3-percent target by end-2020 due to tightened monetary policy and as the impact of one-off effects dissipate. The uncertain global outlook calls for continued exchange rate flexibility, reserve buildup, and prudent macroeconomic policies," IMF stated.
Furthermore, IMF welcomes the authorities’ continued commitment to maintain a tight monetary policy, for as long as needed, and a responsible fiscal policy.
“The 2020 budget appropriately targets a neutral fiscal stance. The fiscal deficit is expected to increase slightly, to 2.4 percent of GDP", IMF said.
In the statement, IMF praises the authorities’ efforts to accelerate VAT refunds by introducing an automatic repayment system; and steps to finalize the Public-Private Partnership framework and improve the management of state-owned enterprises, so that the authorities remain vigilant against a build-up in fiscal risks.
---
Follow the author on Twitter: @Mila61979356