Page 31 - GEORptMar20

The macro parameters have improved through 2019 and now exports are increasing, remittances and tourist revenues are increasing as well.
But “overall, the issue of expectations is the most important,” Bochorishvili stressed, adding that changing rhetoric could be considered a factor in strengthening the local currency.
A series of good news earlier this year also contributed to investors’ improved expectations.
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) said recently. 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.
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.
Despite higher policy rates in the second part of the year, credit growth was sustained, partly supported by lower foreign exchange reserve requirements. Strong revenue growth brought public investment to a record high (8% of GDP) without increasing the fiscal deficit (2.1% of GDP).
After reaching 7% y/y at end-2019, inflation declined to 6.4% y/y in January.
Separately, Fitch Ratings has affirmed the rating for Georgia's long-term foreign currency debt at ‘BB’ with a stable outlook, pointing to governance and business environment indicators above the current medians of category peers and a track record of macroeconomic resilience against regional shocks.
31​ GEORGIA Country Report​ March 2020 ​​www.intellinews.com