IMF in Georgia to discuss economic policy with new government

The Georgian Finance Minister Nodar Khaduri on Wednesday met with representatives of the International Monetary Fund (IMF) to discuss priorities in next year’s budget and the country’s macroeconomic indicators.

Mark Griffiths, head of the IMF mission, said that Georgia’s economic growth was 2.5 percent this year, and in the last months the situation has improved. He said that the IMF expects 5 percent growth next year, but this will require political stability and an improved business environment.

The government’s expectation is more optimistic – according to Khaduri growth will be 7 percent next year. Both predictions are better than the real figures for 2013.

In February, Khaduri said the government expected 6 % growth in 2013, low inflation and reduced state debts. In March, the IMF gave Georgia a new USD 387 million loan to implement a two-year plan aimed at increasing fiscal reserves, balancing the budgets, and restoring market confidence.

Khaduri said the IMF likes the new government’s economic strategy and shared its views, which gives him hope that Georgia will be able to achieve its larger economic goals in terms of growth, employment and prices, often referred to as macroeconomic indicators by experts. (Democracy & Freedom Watch)