Imposed restrictions further aggravate economy growth forecast in Georgia - Minister
BAKU, Azerbaijan, Nov. 27
By Tamilla Mammadova – Trend:
The new restrictions imposed by Georgian government give ground to revise the economic growth rate of 2021, Georgian Finance Minister Ivane Matchavariani said, Trend reports via Georgian media.
The 2021 state budget was planned with a 4.3 percent economic growth forecast.
Matchavariani said that there was a significant decline in revenues in November and January and February will be severe because of the new restrictions, which will affect economic growth next year.
However, Matcahavariani said that the coronavirus vaccine is a positive factor and if taken in time in the second half of 2021 the economy will recover.
He said the state would not need to borrow new debt to finance the $1.1 billion.
"You know that in the coming days, we will enter the parliament with the draft budget. In 2021 we will maintain a high deficit level, and we said we would have to maintain a high deficit. This will be the source of funding. The funds that we have attracted this year and for which signatures have already been signed, the debts we raised this year, which was $1.5 billion to deal with COVID-19," Machavariani said.
The minister also said that even though due to the crisis, the budget deficit of Georgia has increased, the country has a good reputation. Therefore, if necessary, it will be possible to attract new resources.
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