UPDATED IMF FORECAST: GEORGIA’S ECONOMIC GROWTH IN 2021 TO BE 7.7%
IMF mission indicated that recently, Georgia’s economic recovery is underway at “impressive pace”. Monthly estimations for the 2nd quarter indicate rapid growth, as a result of which GDP growth this year will reach 7.7%, the mission said.
IMF: RESUMPTION OF INTERNAL POLITICAL UNCERTAINTY MIGHT AMPLIFY LARI RATE FLUCTUATIONS AND HINDER INVESTMENT
IMF mission indicated that resumption of internal political uncertainty in Georgia might amplify fluctuations of lari exchange rate and hinder investment in the country.
The Mission also pointed that the country’s pace of vaccination against COVID-19 must be increased significantly.
IMF: IT IS NECESSARY TO TOUGHEN FISCAL FRAMEWORK
Growing pressure on Georgian budget’s expenditure part and fiscal risks require more fiscal space and toughened fiscal framework in the country, the IMF mission said.
At that, the mission noted that strengthening of public investment management framework will increase efficiency of capital expenditures and will help to maximize economic growth.
IMF: IT IS NECESSARY TO MAINTAIN ADEQUATE BUFFERS AND RESERVES IN BANKING SECTOR
The goal of the financial sector policy in Georgia now, against the background of signs of recovery, should be maintenance of adequate buffers and reserves in the banking sector, the IMF mission said.
The mission indicated that taking into account the greater than usual uncertainty regarding economic prospects, National Bank of Georgia should urge banks to maintain sufficient retained earnings until decrease of essential risks of economic situation deterioration.
“SAKSTAT” PLANS TO INTRODUCE SCANNER DATA
Sakstat reported that from July 2 to July 19, it hosted the IMF mission, which worked in online format.
As part of the technical assistance mission, detailed recommendations were developed in connection with introduction of scanner data, Georgian statistic service said.
WITHIN FRAMEWORK OF THE STATE PROGRAM, 61 TENANTS TO GET IN OWNERSHIP THEIR RENTED AGRICULTURAL LAND PLOTS
Natia Turnava, Georgia’s Minister of Economy and Sustainable Development, declared that within the framework of the state program, agricultural land plots will be handed over in ownership to 61 tenants. These small and medium-sized farmers will receive 240 ha in total, she noted.