Page 22 - GEORptJul22

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 uncertainty. Georgia’s economy has proven resilient in the past, and with the support of policies under the authorities’ programme, we expect growth to pick up in 2023 and other key indicators to strengthen as well," the IMF said previously.
According to the IMF, "to strengthen growth and make it more inclusive, the authorities’ structural reform priorities focus on education and training to tackle high unemployment and address labour market mismatches, and on upgrading the country’s infrastructure".
"Actions in these areas will improve the business environment, foster regional integration, and enhance the country’s potential as a transportation and logistics hub," the IMF concluded.
22 GEORGIA Country Report July 2022 www.intellinews.com