## IMF Staff Concludes Staff Visit to Georgia

_IMF News, August 28, 2018_

## Source details

**Canonical URL:** [IMF Staff Concludes Staff Visit to Georgia](https://www.imf.org/en/news/articles/2018/08/28/pr18334-imf-staff-concludes-staff-visit-to-georgia)

## Other formats

- [Markdown version](/en/news/articles/2018/08/28/pr18334-imf-staff-concludes-staff-visit-to-georgia/index.md)
- [Structured JSON version](/en/news/articles/2018/08/28/pr18334-imf-staff-concludes-staff-visit-to-georgia/index.json)
- [Bundle manifest](/en/news/articles/2018/08/28/pr18334-imf-staff-concludes-staff-visit-to-georgia/bundle-manifest.json)

## Bibliographic details
- Published: August 28, 2018

---

### Mission summary
- Press Release No. 18/334; mission dates: August 21-27, 2018.
- Team led by Ms. Mercedes Vera-Martin; visit to Tbilisi to discuss recent economic and financial developments and progress with structural reforms.
- Statement clarifies: views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.

### Macroeconomic developments and projections
- Growth in the first half of 2018 reached 5.7 percent, supported by robust external demand, remittances, and credit.
- IMF revised 2018 GDP growth projection upward from 4.8 percent to 5.5 percent as a result of stronger-than-expected economic activity.
- Inflation stood at 2.8 percent in July, below the end-year target of 3 percent.
- National Bank of Georgia (NBG) started to normalize monetary policy by decreasing its policy rate by 25 basis points.
- Deposit and loan dollarization continue to decline.
- Preliminary estimates suggest a better-than-expected budget performance through June.

### External position and risks
- Strong economic activity and weaker terms of trade are expected to widen the current account deficit.
- Downside risks to the outlook have increased, driven by regional developments and global trade tensions.
- Policy implications emphasized:
  - Build up reserves.
  - Continue exchange rate flexibility, which has served the country well.
  - Maintain prudent macroeconomic policies to bolster resilience to external shocks.

### Structural reform progress and recommendations
- Authorities’ reforms welcomed; sustained implementation will support higher and long-lasting growth, and increase resilience.
- Specific reform actions noted:
  - Established an independent pension agency.
  - Adopted regulations to implement the new public private partnership law.
  - Progress toward modernizing the insolvency law and regulations to promote responsible lending.
- Policy objective: advance structural reforms to increase economic resilience, boost private-sector led growth, diversify the economy, and improve the living standards of Georgian citizens.

### Engagements and next steps
- The team met with Governor of the National Bank Gvenetadze, Minister of Finance Matchavariani, Minister of Infrastructure Tskitishvili, other senior officials, and representatives of the private sector and development partners.
- Team looks forward to continuing the dialogue during the visit for the third review of Georgia’s IMF-supported program in October.

### Media contact
- IMF Communications Department — MEDIA RELATIONS
- PRESS OFFICER: Randa Elnagar
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org

*International Monetary Fund*

---

## Content in this bundle

- [Pr18334g (PDF)](/external/lang/georgian/np/sec/pr/2018/pr18334g.pdf){rel="external" type="application/pdf"}

---

## References

- [Georgia and the IMF](http://www.imf.org/external/country/GEO/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2018/08/28/pr18334-imf-staff-concludes-staff-visit-to-georgia_