BAKU, Azerbaijan, June 3
By Tamilla Mammadova – Trend:
The International Monetary Fund (IMF) predicts decline of foreign direct investment (FDI) by 19 percent in Georgia in 2020, Trend reports via the IMF.
As reported, that means reduction of $241 million in investments.
According to the updated forecast, the International Monetary Fund predicts a decrease of $1.8 billion in foreign exchange inflows to Georgia in 2020.
Consequently, the balance of payments deficit will increase by 11 percent of GDP due to the crisis. The organization says that Georgia will balance this imbalance with funds attracted from donor organizations.
The IMF's updated macroeconomic forecast is as follows: reduction of exports - 24 percent; reduction of imports of goods - 21.1 percent; reduction of exports of services (including tourism) - 55.7 percent; reduction of import services - 60 percent; reduction of remittances - 15 percent; reduction of foreign direct investment -19 percent.
Meanwhile, Georgia received budget support of $201.3 million from the International Monetary Fund.
Last month, the IMF Executive Board approved access of SDR147 million (about $200 million) for budget support, to help Georgia meet urgent balance of payments and fiscal needs stemming from the COVID-19 pandemic, including increased spending on health services and social protection.
“The augmentation of access under the Extended Fund Facility arrangement should support the authorities’ policies to address the COVID-19 shock and help meet the urgent balance-of payments need,” IMF Deputy Managing Director and Chair Tao Zhang said.
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