IMF Reduced Forecast of the Economic Growth in Georgia
International Monetary Fund predicts the economic growth to increase by 4.6% in Georgia, which is 0.2% less than the indicator of the last forecast.
As the Fund designates, the slowing down of the local demand by the end of 2018 is almost leveled out thanks to the export and tourism which lead to the reduction of the current account deficit to 8%.
In addition, IMF positively estimates the actions of the National Bank in relation to the increase of the external buffers, i.e. to the purchase of the foreign currencies.
“The fiscal deficit has gotten better and reached 2.5% GDP. However, big part of the expenses were spent by the end of 2018 which equalized the drop of the expenses of previous months”, says IMF.
In addition, the mission review of the fund reads: “We think that the proceedings supervised by The National Bank is equivalent to the very obligation of The National Bank to reinforce the stability of the financial sector”.
IMF states, that high expenses of the infrastructure (including those in 2018) will balance out the more or less positive external relations and the influence of the slowly growing credit over the economy. However, parallel to the growth of the infrastructural expenses the selection and management of projects must also improve.
Among the recessive risks influencing the economic perspective the fund sites the low increase of the trading partnerships, the tensity of international trade and the slowing down of the credit growth.