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IMF welcomes fiscal measures in Georgia's supplementary budget

Business Materials 13 July 2020 17:06
IMF welcomes fiscal measures in Georgia's supplementary budget

BAKU, Azerbaijan, July 13

By Tamilla Mammadova – Trend:

Georgia has taken appropriate steps in containing COVID-19's impact on public health sector and the country's economy, International Monetary Fund (IMF) Mission Chief for Georgia Mercedes Vera Martin told Trend.

According to her, prudent macroeconomic policies, the buildup of external and fiscal buffers before the crisis, engaging the donor community early on, and a healthy and well-supervised financial system have provided space for a comprehensive policy response

"In that context, we welcome the fiscal measures adopted in the recent supplementary budget that would provide imperative lifeline support to businesses and households," Vera Martin said.

There is now pervasive uncertainty around the outlook, which depends on the depth of the contraction in the second quarter of 2020, for which complete data are not yet available, and the magnitude and persistence of the adverse shock, the mission chief stressed.

"Containing the economic impact of COVID-19 requires close monitoring and swift policy response," Vera Martin said.

The authorities should not hesitate to further use their fiscal and external buffers if downside risks materialize and continue to secure support from partners, which would require prudent macroeconomic policies and persistence in structural reforms, she added.

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