Finance Minister disagrees with the report of IMF

Minister of Finance of Georgia, Nodar Khaduri, disagreed with the data of the International Monetary Fund (IMF) on Georgia included in the World Economic Outlook 2013 document. According to the report, the prognosis on economic growth in Georgia has been reduced to 2.5% in 2013.

The document of IMF was published a couple of days ago. The data included in it on Georgia has been changed twice now. In the beginning of 2013, the IMF predicted 6% economic growth in Georgia, but in June, this index was reduced to 4%.

“In Georgia, it is expected to moderate given the slower private investment, weak credit growth and budget under-spending. Inflation in the region will average 6-6 ? percent...This year’s policy rate cuts should help reduce deflationary pressures, although resolution of recent political uncertainty is needed to restore investor confidence,” the document says.

The experts of the IMF explain the reduction of the speed of economic growth with the reduction of private investment and credits. The report also includes the prognosis of the year 2014. IMF predicts 5% growth in Georgia's economy next year.

The Georgian Minister says the prognosis of the IMF lacked both arguments and logic.

“We have worked on this and of course, we disagree with that, but I was surprised with the fact that the prognosis on the reduction of employment in Georgia was absolutely unimaginable, because, there was no communication on the issue with the Georgian government or the ministry of finance and no factual data confirms that any problem should be expected,” Finance Minister Nodar Khaduri defined.
(Rustavi 2)