Page 18 - GEORptAug22

4.3 Fixed investment
Georgia’s fixed capital formation at $997.7mn in Q4
Georgia’s gross fixed capital formation was at $997.72 in December 2021, up from 966.02mn in September.
IMF approves $280mn standby arrangement for Georgia
The executive board of the International Monetary Fund (IMF) approved a $280mn (with 100% of quota and special drawing rights of 210.4mn) Stand By Arrangement (SBA) for Georgia, which delivers support for the country's economic policies over the next three years. According to the board’s decision about $40mn with SDR 30 million or 14.3% of Georgia’s quota will be immediately available. The Georgian authorities intend to treat the new arrangement as precautionary, according to the IMF website.
"The authorities’ IMF-supported programme seeks to further entrench macroeconomic stability, build resilience, and strengthen medium-term growth as the country emerges from the COVID-19 pandemic and contends with spillovers from the war in Ukraine," the IMF said.
Previously, at the request of the Georgian authorities, the IMF held virtual meetings with Georgian officials between November 18, 2021, and March 31, 2022, to discuss a three-year economic programme amount of SDR210.4 million ($289mn).
"Georgia’s economy was enjoying a strong recovery from the COVID-19 pandemic—growth reached 10.4% in 2021—before the Russian invasion of Ukraine. Spillovers from the war and sanctions are expected to lower Georgia’s growth to around 3% in 2022, raise inflation, and widen the current account deficit. The outlook is subject to a higher-than-usual level of
18 GEORGIA Country Report August 2022 www.intellinews.com