Georgia: Third Review Under the Extended Fund Facility Arrangement-Press Release; Staff Report; Staff Supplement
IMF Staff Country Reports, December 19, 2018
Source details
- Canonical URL
- Georgia: Third Review Under the Extended Fund Facility Arrangement-Press Release; Staff Report; Staff Supplement
Other formats
Bibliographic details
- Published: December 19, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484391549.002
Recent economic developments
- Economic activity remained strong in 2018H1 but decelerated since due to subdued private construction activity and delays in public infrastructure.
- Inflation has remained below the 3-percent inflation target in 2018.
- Higher revenues and lower investment resulted in a fiscal surplus through September 2018.
Financial sector and credit dynamics
- Against the background of high credit growth, the authorities introduced regulations to limit household over-indebtedness.
- The banking sector remains well capitalized, liquid, and profitable, but dollarization remains high.
Risks and vulnerabilities
- Subdued private construction activity and delays in public infrastructure contributed to the mid-2018 slowdown in growth.
- High credit growth and elevated dollarization pose financial stability risks, particularly for households and banks if external conditions or exchange rates shift.
Policy actions taken
- Introduction of regulations aimed at limiting household over-indebtedness in response to high credit growth.
Georgia: Third Review Under the Extended Fund Facility Arrangement; Press Release; Staff Report; Staff Supplement — December 19, 2018
Content in this bundle
- Country Report