Georgia: 2011 Article IV Consultation-Staff Report; Staff Supplements; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Georgia
IMF Staff Country Reports, April 21, 2011
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- Georgia: 2011 Article IV Consultation-Staff Report; Staff Supplements; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Georgia
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Bibliographic details
- Published: April 21, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455249299.002
Summary and Key Findings
- The government of Georgia moved forcefully to counter the economic impact of the August 2008 conflict with Russia and global financial crisis.
- Monetary and prudential policy easing was unable to prevent a sharp credit squeeze.
- The economy is recovering at a solid pace, with real GDP growth expected to exceed 6 percent in 2010.
- To reduce exposure to changes in external market conditions, the authorities could rely more on domestic financing.
- Macroeconomic policies were generally aligned with previous IMF recommendations.
Economic Outlook and Risks
- Real GDP growth expected to exceed 6 percent in 2010.
- Main near-term risks derive from external market conditions and financial-sector disruptions (manifested in a sharp credit squeeze following policy easing).
Policy Recommendations and Considerations
- Rely more on domestic financing to reduce exposure to changes in external market conditions.
- Continue alignment of macroeconomic policies with prior IMF recommendations.
- Maintain prudential and monetary policy vigilance in the face of credit squeezes and external shocks.
Subject Areas and Keywords
- Subject: Exchange rate flexibility, Exchange rates, External debt, Foreign exchange, Public debt
- Keywords: Central Asia, consultation, consultation informational annex, CR, credit story, current account, Exchange rate flexibility, Exchange rates, foreign direct investment inflow, Georgian authorities, Global, government, inflation development, inflation pressure, ISCR, Middle East, state intervention
Content in this bundle
- Executive Summary