Page 38 - GEORptOct22

6.3 Debt
Georgia - Gross 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 external debt
Gross external debt ($ mn)
18,645 18,348 18,927 19,949 20,607 20,861 20,912 21,044 21,832
2013 2014 2015 2016 2017 2018 2019 2020 2021
Gross external debt (% GDP)
78.2 79.4 102.7 105.1 106.4 101.4 107.0 130.3 116.3
source: CEIC, World Bank
Georgia to reduce foreign debt due to high economic growth
Georgian Prime Minister Irakli Garibashvili announced amendments to the country's budget bill to reduce its foreign debt to 40% of gross domestic product (GDP). The budget deficit is also expected to go down to 3.2% of GDP, because of the country's "unprecedented, double-digit" growth, Garibashvili said during the cabinet meeting on September 13.
The initial budget draft envisaged a budget deficit of 4.4% of GDP and a foreign debt of 51% of GDP.
"However, thanks to the economic increase, the government has decided to take GEL710mn ($251mn) less debt than previously planned, which will allow it to decrease the foreign debt," Garibashvili said.
Praising the government's "correct, far-sighted and state interest oriented" policy following Russia's invasion of Ukraine, the PM said Georgia had enjoyed a "double-digit economic growth of 10.4% last year, and the trend has been maintained this year with a 10% economic growth over the past seven months".
The unprecedented economic growth was due to the government's policy, which had refused to pursue the emotional, immature and anti-state calls coming from its opponents," Garibashvili said about criticism of the domestic opposition of the government's stances on Russia's invasion of Ukraine, that the opposition deemed "pro-Russia".
38 GEORGIA Country Report October 2022 www.intellinews.com