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SDR30mn ($41.6mn) tranche will be disbursed to Georgia, bringing total disbursements to $210mn out of the total $285mn envisaged under the EFF.
An IMF team led by Mercedes Vera Martin visited Tbilisi from April 30 to May 13 to discuss the fourth review under the EFF. The programme supports the government’s reform agenda aimed at reducing economic and financial vulnerabilities and generating higher and more inclusive growth.
“The reform programme remains on track, with most commitments for the completion of the fourth review met,” Martin concluded.
“Growth is projected at 4.6% in 2019, with inflation somewhat above the 3% target mostly reflecting increases in tobacco excises. Structural reforms and infrastructure investment are expected to gradually increase growth to 5.25% over the medium term. The current account deficit is expected to narrow gradually supported by an improving trade balance,” she added.
3.2 Macro outlook
EBRD sticks to forecast of 4.5% economic growth in Georgia in 2019
The European Bank for Reconstruction and Development (EBRD) has stuck to its forecast of Georgian economic growth of 4.5% in 2019 in its latest economic outlook .
The expansion would be a slight decline on the 4.7% recorded in 2018 and 4.8% registered in 2017, the development bank added, observing that the “the Georgian economy remains on the path of strong economic growth”.
High-frequency indicators pointed to growth in Georgia of 4.1% y/y in the first two months of 2019, the EBRD said, adding in a commentary: “Economic output expanded by 4.7 per cent in 2018, driven largely by growth in trade, real estate, transport and financial intermediation. The hospitality sector continued to boom, supporting overall economic performance; the share of tourism-related services in the whole economy increased from an average of 7.3 per cent in 2015-17 to 8.1 per cent in 2018. However, output of the construction sector declined by 3.1 per cent, marking the first contraction in the sector since 2013.”
14 GEORGIA Country Report June 2019 www.intellinews.com
