Georgia: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Georgia

IMF Staff Country Reports, May 24, 2024

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Canonical URL: Georgia: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Georgia

Georgia’s economic performance remains robust.
Growth has moderated from double digits but remains high.
Inflation is low.
Fiscal and financial buffers are healthy.
EU candidate status has boosted sentiment.
The global environment remains highly uncertain due to ongoing conflicts and shifting geo-economic patterns.

Continue to strengthen resilience to adverse shocks by maintaining prudent macroeconomic policies.
Capitalize on new economic opportunities and make decisive progress toward EU accession to boost growth potential.
Structural reforms are needed to achieve stronger, more inclusive, and job-rich growth.

Modest further fiscal adjustment is appropriate in the medium term.
- Purpose: to build sufficient buffers under the fiscal rule and create room for productive spending.

Monetary policy normalization should proceed gradually and cautiously, to ensure core inflation remains close to target.
Continued exchange rate flexibility is essential.
Reserve build-up is recommended to guard against external shocks.

Maintain financial sector vigilance to guard against risks, including from capital inflows, virtual assets, and sanctions.

Preserve prudent macroeconomic stance (fiscal and monetary).
Build buffers under the fiscal rule while allowing room for productive spending.
Gradual monetary normalization to keep core inflation near target.
Maintain exchange rate flexibility and accumulate reserves.
Strengthen financial sector oversight against emerging risks.
Undertake structural reforms to raise long-term, inclusive, and job-rich growth prospects, and advance EU accession efforts.

Source: Georgia: 2024 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Georgia (May 24, 2024).