{
  "title": "IMF Staff Concludes Visit to Georgia",
  "publication": "IMF News, September 15, 2022",
  "sourceUrl": "https://www.imf.org/en/news/articles/2022/09/14/pr22304-georgia-imf-staff-concludes-visit-to-georgia",
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  "summary": "IMF Staff Concludes Visit to Georgia",
  "publishDate": "2022-09-15",
  "sections": [
    {
      "heading": "Mission summary",
      "content": "- Mission dates: September 8-14, 2022.\n- End-of-Mission press release date: September 15, 2022.\n- Mission leader: Mr. James John.\n- Statement clarifies: “The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.”"
    },
    {
      "heading": "Economic outlook and growth",
      "content": "- Growth projection revised up to 9 percent in 2022.\n- Drivers of stronger-than-expected performance:\n  - Faster-than-expected recovery of tourism.\n  - A surge in inbound money transfers.\n  - Immigration-related flows.\n- Impact on financial sector: “The continued strong recovery has reinforced the soundness of the banking sector.”\n- Inflation: “Headline inflation has begun to decelerate, although it remains well above the National Bank of Georgia (NBG) target.”"
    },
    {
      "heading": "Risks and uncertainty",
      "content": "- Unusually high uncertainty with notable downside risks including:\n  - A sharper slowdown in major trading partners.\n  - Tighter global financial conditions.\n  - Possible weakening of tourism and other external inflows.\n  - Sustained high commodity prices."
    },
    {
      "heading": "Fiscal developments and recommendations",
      "content": "- 2022 budget execution: “Appears on track and revenue collection is higher than expected reflecting elevated growth and inflation.”\n- Policy guidance:\n  - Save additional revenue to strengthen fiscal cushions and help contain inflation pressures.\n  - As work on the 2023 budget proceeds, ensure compliance with the fiscal rule in line with the path envisaged under Georgia’s IMF-supported program.\n  - Build fiscal and foreign exchange buffers."
    },
    {
      "heading": "Structural reforms and fiscal risk management",
      "content": "- Progress noted on:\n  - Strengthening state-owned enterprise governance.\n  - Public investment management.\n  - Developing a support scheme for renewable power generation.\n- Rationale: “Successful implementation of these important reforms would limit fiscal risks and enhance the economy’s resilience over the medium term.”"
    },
    {
      "heading": "Monetary policy, exchange rate, and external buffers",
      "content": "- Assessment of National Bank of Georgia (NBG) actions:\n  - NBG has taken steps to mitigate inflation pressures and support financial stability.\n  - The mission “welcomes the authorities’ continued commitment to exchange rate flexibility, which has proven an essential shock absorber in recent years.”\n  - With external flows more favorable than expected, the NBG has been “appropriately” building external buffers by purchasing foreign exchange reserves via standard central bank intervention techniques.\n- Policy recommendations for NBG:\n  - Continue to carefully assess inflation dynamics.\n  - Be ready to raise interest rates further if there are signs of inflation becoming more broad-based or entrenched."
    },
    {
      "heading": "Engagements and next steps",
      "content": "- Meetings held with:\n  - Governor of the National Bank Gvenetadze.\n  - Minister of Finance Khutsishvili.\n  - Minister of Economy and Sustainable Development Davitashvili.\n  - Minister of Infrastructure and Regional Development Karseladze.\n  - Other senior officials, private sector representatives, and the donor community.\n- Outlook: The IMF team looks forward to continuing dialogue “in the coming months in the context of the first review of Georgia’s IMF-supported economic reform program.”\n\nSource: IMF press release, September 15, 2022.\n\n---\n\n Content in this bundle\n\n- სსფ-ს მისიის ვიზიტი საქართველოში დასრულდა\n  - სსფ-ს მისიის ვიზიტი საქართველოში დასრულდა (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - სსფ-ს მისიის ვიზიტი საქართველოში დასრულდა (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- Georgia and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2022/09/14/pr22304-georgia-imf-staff-concludes-visit-to-georgia"
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    "Published: September 15, 2022",
    "Mission dates: September 8-14, 2022.",
    "End-of-Mission press release date: September 15, 2022.",
    "Mission leader: Mr. James John.",
    "Statement clarifies: “The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.”",
    "Growth projection revised up to 9 percent in 2022.",
    "Drivers of stronger-than-expected performance:",
    "Impact on financial sector: “The continued strong recovery has reinforced the soundness of the banking sector.”",
    "Inflation: “Headline inflation has begun to decelerate, although it remains well above the National Bank of Georgia (NBG) target.”",
    "Unusually high uncertainty with notable downside risks including:",
    "2022 budget execution: “Appears on track and revenue collection is higher than expected reflecting elevated growth and inflation.”",
    "Policy guidance:",
    "Progress noted on:",
    "Rationale: “Successful implementation of these important reforms would limit fiscal risks and enhance the economy’s resilience over the medium term.”",
    "Assessment of National Bank of Georgia (NBG) actions:",
    "Policy recommendations for NBG:",
    "Meetings held with:",
    "Outlook: The IMF team looks forward to continuing dialogue “in the coming months in the context of the first review of Georgia’s IMF-supported economic reform program.”",
    "**სსფ-ს მისიის ვიზიტი საქართველოში დასრულდა**",
    "[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)"
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