Page 12 - GEORptMar20

IMF completes visit to Georgia on a positive note
growth of 4.7% in 2020 amid “fiscal acceleration during elections”.
According to Geostat, a substantial increase in exports positively influenced GDP growth. In January, the country’s exports increased by 10% y/y to $262.6mn, while imports also increased, but by only 4%. Nonetheless, the trade gap remains wide as imports are more than double exports.
Growth was observed in the following sectors: transportation and warehousing; construction and real estate; accommodation and food supply; wholesale and retail trade; repair of motor vehicles and motorcycles; information and communication; electricity, gas, steam and air conditioning supply and the processing industry.
Fiscal stimulus played an important role last year and is likely to remain a clear factor in 2020 in the context of the run-up to the general election to be held this autumn.
Major investment bank in Georgia, Galt & Taggart (G&T), expects the country to see growth of 4.7% in 2020 amid “fiscal acceleration during elections”, Lasha Kavtaradze, head of its macroeconomics analysis and forecasting told Businiss Media in an interview on January 19. The World Bank remains on the conservative side—it anticipates Georgia will record a GDP gain of 4.3% this year, according to the latest edition of its Global Economic Prospects report issued on January 9.
Georgia’s growth remains strong but advancing structural reforms remain key to promoting higher resilience to external shocks and more inclusive growth over the medium term, a team of the International Monetary Fund (IMF).​ Led by Mercedes Vera-Martin, the team visited Tbilisi during February 5-11 to discuss recent economic and financial developments and progress with structural reforms.
The team is set to conduct discussions for the sixth review under the Extended Fund Facility in April.
According to preliminary estimates of the Fund, Georgia’s real GDP grew 5.2% in 2019 compared to the projected 4.6%, and the current account deficit declined to a record low of 4.4% of GDP.
12​ GEORGIA Country Report​ March 2020 ​​www.intellinews.com