Caspian Energy Journal Caspian European Club
Tuesday, 30 October 2018 13:00

Fiscal deficit in Georgia projected at 2.3 percent of GDP

Fiscal deficit in Georgia projected at 2.3 percent of GDP

An International Monetary Fund (IMF) team led by IMF Mission Chief Mercedes Vera Martin visited Tbilisi during October 17-29 to discuss the third review under the Extended Fund Facility (EFF). The program aims to support Georgia’s ambitious reform agenda to generate higher and more inclusive growth and to reduce economic and financial vulnerabilities, Caspian Energy News ( reports with reference to the press statement of the international Monetary Fund (IMF).

“The reform program is advancing well, with most program targets for the third review met. Growth in 2018 was robust through July, due to strong economic activity in main trading partners and domestic demand, but it has softened recently. Accordingly, we revised our 2018 growth forecast downward to 5.0 percent (from 5.5 percent) and to 4.6 percent for 2019. Despite strong growth in exports, tourism, and remittances, the current account deficit is expected to deteriorate slightly in 2018-19 mainly due to higher oil prices. Meanwhile, credit growth has been supporting economic activity,” Mercedes Vera Martin said.

 “Significant fiscal overperformance was recorded in the first half of 2018 due to higher-than-expected revenues, driven by robust economic activity, and delays in large infrastructure projects. For the full year, the fiscal deficit is projected at 2.3 percent of GDP. Annual inflation in 2018-19 is expected to remain broadly in line with the National Bank of Georgia’s inflation target of 3 percent. A flexible exchange rate remains pivotal to protect Georgia against external shocks,” she said.

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Person in charge of the newsline: Olga Nagiyeva 

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