IMF expects deficit in GDP to decline in Georgia

BAKU, Azerbaijan, November 18

By Tamilla Mammadova – Trend:

The lari exchange rate deprecation amid the current economic and political situation in Georgia is not a surprise, said IMF resident representative in Georgia Selim Chakir, Trend reports via Georgian media.

Chakir noted that the volatility of foreign currencies in the neighboring trade partner countries also burdens the lari exchange rate.

“The world is facing the major economic crisis and its outcomes burden the Georgian economy too. The exchange rate volatility in this situation is a normal fact. You have witnessed how the tourism industry was affected. The time is required for its recovery," he said,

According to Chakir, the current account deficit has almost doubled compared to 2019. Its ratio in GDP has increased to 9.7 percent from 5.4 percent.

"This deficit will start declining along with the tourism sector recovery. I expect the tourism industry incomes in 2021 to be only 25 percent of the 2019 total incomes. We expect the deficit in GDP to decline to 8.5 percent from 9.7 percent. Depreciation of foreign currencies in your trade partner countries also affect the lari exchange rate. Political instability influences inventors’ moods and decisions,” Chakir noted.

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