{
  "title": "IMF Executive Board Completes First Review under the Stand-By Arrangement with Georgia",
  "publication": "IMF News, December 21, 2022",
  "sourceUrl": "https://www.imf.org/en/news/articles/2022/12/21/pr22443-imf-executive-board-completes-first-review-under-the-stand-by-arrangement-with-georgia",
  "canonical": "https://www.imf.org/en/news/articles/2022/12/21/pr22443-imf-executive-board-completes-first-review-under-the-stand-by-arrangement-with-georgia",
  "overlayPath": "/en/news/articles/2022/12/21/pr22443-imf-executive-board-completes-first-review-under-the-stand-by-arrangement-with-georgia/index.md",
  "summary": "IMF Executive Board Completes First Review under the Stand-By Arrangement with Georgia",
  "publishDate": "2022-12-21",
  "sections": [
    {
      "heading": "Review completion and financing",
      "content": "- The Executive Board completed the first review of the three-year Stand-By Arrangement (SBA) for Georgia.\n- Completion of the review enables access of SDR 30 million (about US$40 million).\n- The Georgian authorities continue to treat the arrangement as precautionary."
    },
    {
      "heading": "Macroeconomic performance and outlook",
      "content": "- Strong growth of 10 percent is projected for 2022.\n- Growth drivers in 2022: limited adverse spillovers from Russia’s war in Ukraine; buoyant tourism revenues; a surge in war-related inbound migration and financial inflows; and a rise in transit trade through Georgia.\n- Inflation has been slowing but remains elevated at around 10½ percent due to high commodity prices and strong domestic demand.\n- Both growth and inflation are expected to moderate in 2023.\n- Factors expected to moderate growth and inflation in 2023: a slowdown in global trade; tighter financial conditions; falling commodity prices; recent lari appreciation; and sufficiently tight monetary policy.\n- Uncertainty and risks to the outlook remain high."
    },
    {
      "heading": "Policy assessment and recommendations",
      "content": "- The authorities have appropriately used recent positive outturns to rebuild fiscal and external buffers; program performance has been satisfactory.\n- Fiscal policy:\n  - Authorities used revenue overperformance to achieve faster deficit reduction in 2022 and committed to further deficit reduction to comply with their fiscal rule in 2023.\n  - Further progress recommended on reducing tax expenditures, improving revenue administration, and strengthening public investment management to increase fiscal space for priority spending and improve the quality of capital spending.\n- State-owned enterprises and energy:\n  - Important actions taken on state-owned enterprise governance reform and renewable energy development.\n  - Continued implementation of strategies is important, including to guard against fiscal risks.\n- Monetary and external policy:\n  - The National Bank of Georgia rebuilt international reserves more quickly than programmed.\n  - Monetary policy needs to remain sufficiently tight to bring down inflation; policymakers should be ready to tighten monetary policy further if high inflation persists.\n  - Continued exchange rate flexibility and prudent accumulation of reserves will provide further resilience against external shocks.\n- Structural reforms:\n  - Advancing structural reforms will support stronger and more inclusive growth.\n  - Priorities include improving competitiveness by strengthening the business environment and enhancing governance.\n  - Authorities' plans for education reform and training programs will help reduce unemployment and enhance inclusion.\n  - It will be important to prioritize among key infrastructure projects."
    },
    {
      "heading": "Key statistics (Table 1. Georgia: Selected Economic and Financial Indicators, 2020–24)",
      "content": "- Real GDP (annual percentage change)\n  - 2020: -6.8\n  - 2021: 10.5\n  - 2022: 10.0\n  - 2023: 4.0\n  - 2024: 5.2\n- Nominal GDP (in billion of laris)\n  - 2020: 49.3\n  - 2021: 60.0\n  - 2022: 72.5\n  - 2023: 80.1\n  - 2024: 86.9\n- Nominal GDP (in billion of U.S. dollars)\n  - 2020: 15.8\n  - 2021: 18.6\n  - 2022: 24.7\n  - 2023: 27.1\n  - 2024: 29.7\n- GDP per capita (in thousand of U.S. dollars)\n  - 2020: 4.3\n  - 2021: 5.0\n  - 2022: 6.7\n  - 2023: 7.3\n  - 2024: 8.0\n- GDP deflator, period average\n  - 2020: 7.2\n  - 2021: 10.3\n  - 2022: 6.5\n  - 2023: 3.0\n- CPI, Period average\n  - 2020: 9.6\n  - 2021: 12.0\n  - 2022: 6.0\n- CPI, End-of-period\n  - 2020: 2.4\n  - 2021: 13.9\n  - 2022: 3.8\n- Consolidated government operations (in percent of GDP)\n  - Revenue and grants\n    - 2020: 25.2\n    - 2021: 25.5\n    - 2022: 26.5\n    - 2023: 25.9\n    - 2024: 25.8\n  - o.w. Tax revenue\n    - 2020: 22.3\n    - 2021: 22.6\n    - 2022: 23.9\n    - 2023: 23.6\n  - Total Expenditure\n    - 2020: 34.5\n    - 2021: 31.6\n    - 2022: 29.3\n    - 2023: 28.9\n    - 2024: 28.0\n  - Current expenditures\n    - 2020: 26.3\n    - 2021: 24.6\n    - 2022: 21.7\n    - 2023: 21.9\n    - 2024: 22.1\n  - Net acquisition of nonfinancial assets\n    - 2020: 8.2\n    - 2021: 6.9\n    - 2022: 7.6\n    - 2023: 7.0\n    - 2024: 5.9\n  - Net Lending/Borrowing (GFSM 2001)\n    - 2020: -9.3\n    - 2021: -6.0\n    - 2022: -2.8\n    - 2023: -2.9\n    - 2024: -2.2\n  - Augmented Net lending / borrowing (Program definition) 1/\n    - 2020: -9.4\n    - 2021: -6.1\n    - 2022: -3.1\n    - 2023: -2.3\n- Public debt\n  - 2020: 60.2\n  - 2021: 49.7\n  - 2022: 41.2\n  - 2023: 42.0\n  - 2024: 41.4\n  - o.w. Foreign-currency denominated\n    - 2020: 47.6\n    - 2021: 39.9\n    - 2022: 31.4\n    - 2023: 31.5\n- Money and credit (in percent; unless otherwise indicated)\n  - Credit to the private sector (annual percentage change)\n    - 2020: 22.4\n    - 2021: 12.4\n    - 2022: 8.5\n  - In constant exchange rate\n    - 2020: 9.0\n    - 2021: 18.2\n    - 2022: 10.9\n    - 2023: 8.8\n  - Broad money (annual percentage change)\n    - 2020: 11.4\n    - 2021: 7.4\n    - 2022: 12.6\n    - 2023: 11.1\n  - Broad money (excl. fx deposits, annual percentage change)\n    - 2020: 18.8\n    - 2021: 17.9\n    - 2022: 12.8\n    - 2023: 13.7\n    - 2024: 12.2\n- External sector (in percent of GDP; unless otherwise indicated)\n  - Current account balance\n    - 2020: -12.5\n    - 2021: -10.4\n    - 2022: -5.6\n    - 2023: -6.6\n    - 2024: -5.7\n  - Trade balance\n    - 2020: -20.0\n    - 2021: -20.3\n    - 2022: -22.0\n    - 2023: -22.2\n    - 2024: -18.4\n  - Terms of trade (percent change)\n    - 2020: 5.7\n    - 2021: -13.6\n    - 2022: 2.5\n    - 2023: 3.5\n    - 2024: 1.5\n  - Gross international reserves (in billions of US$)\n    - 2020: 3.9\n  - In percent of IMF Composite measure (floating)\n    - 2020: 107.4\n    - 2021: 106.9\n    - 2022: 98.6\n    - 2023: 83.3\n    - 2024: 81.4\n  - Gross external debt\n    - 2020: 110.5\n    - 2021: 99.8\n    - 2022: 77.7\n    - 2023: 73.1\n    - 2024: 68.4\n\nSource: Press Release No. 22/443, IMF, December 21, 2022.\n\n---\n\n Content in this bundle\n\n- საერთაშორისო სავალუტო ფონდის აღმასრულებელ დირექტორთა საბჭომ საქართველოს მხარდამჭერი პროგრამის\n  - საერთაშორისო სავალუტო ფონდის აღმასრულებელ დირექტორთა საბჭომ საქართველოს მხარდამჭერი პროგრამის (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - საერთაშორისო სავალუტო ფონდის აღმასრულებელ დირექტორთა საბჭომ საქართველოს მხარდამჭერი პროგრამის (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/2022/12/21/pr22443-imf-executive-board-completes-first-review-under-the-stand-by-arrangement-with-georgia"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2022/12/21/pr22443-imf-executive-board-completes-first-review-under-the-stand-by-arrangement-with-georgia/index.md)",
    "[Structured JSON version](/en/news/articles/2022/12/21/pr22443-imf-executive-board-completes-first-review-under-the-stand-by-arrangement-with-georgia/index.json)",
    "[Bundle manifest](/en/news/articles/2022/12/21/pr22443-imf-executive-board-completes-first-review-under-the-stand-by-arrangement-with-georgia/bundle-manifest.json)",
    "Published: December 21, 2022",
    "The Executive Board completed the first review of the three-year Stand-By Arrangement (SBA) for Georgia.",
    "Completion of the review enables access of SDR 30 million (about US$40 million).",
    "The Georgian authorities continue to treat the arrangement as precautionary.",
    "Strong growth of 10 percent is projected for 2022.",
    "Growth drivers in 2022: limited adverse spillovers from Russia’s war in Ukraine; buoyant tourism revenues; a surge in war-related inbound migration and financial inflows; and a rise in transit trade through Georgia.",
    "Inflation has been slowing but remains elevated at around 10½ percent due to high commodity prices and strong domestic demand.",
    "Both growth and inflation are expected to moderate in 2023.",
    "Factors expected to moderate growth and inflation in 2023: a slowdown in global trade; tighter financial conditions; falling commodity prices; recent lari appreciation; and sufficiently tight monetary policy.",
    "Uncertainty and risks to the outlook remain high.",
    "The authorities have appropriately used recent positive outturns to rebuild fiscal and external buffers; program performance has been satisfactory.",
    "Fiscal policy:",
    "State-owned enterprises and energy:",
    "Monetary and external policy:",
    "Structural reforms:",
    "Real GDP (annual percentage change)",
    "Nominal GDP (in billion of laris)",
    "Nominal GDP (in billion of U.S. dollars)",
    "GDP per capita (in thousand of U.S. dollars)",
    "GDP deflator, period average",
    "CPI, Period average",
    "CPI, End-of-period",
    "Consolidated government operations (in percent of GDP)",
    "Public debt",
    "Money and credit (in percent; unless otherwise indicated)",
    "External sector (in percent of GDP; unless otherwise indicated)",
    "**საერთაშორისო სავალუტო ფონდის აღმასრულებელ დირექტორთა საბჭომ საქართველოს მხარდამჭერი პროგრამის**",
    "[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)"
  ],
  "related": [
    {
      "title": "საერთაშორისო სავალუტო ფონდის აღმასრულებელ დირექტორთა საბჭომ საქართველოს მხარდამჭერი პროგრამის",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/news/press-release/2022/pr22443-ara-georgia.pdf",
      "summary": {
        "path": "/-/media/files/news/press-release/2022/pr22443-ara-georgia.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/news/press-release/2022/pr22443-ara-georgia.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/news/articles/2022/12/21/pr22443-imf-executive-board-completes-first-review-under-the-stand-by-arrangement-with-georgia/index.md",
    "json": "/en/news/articles/2022/12/21/pr22443-imf-executive-board-completes-first-review-under-the-stand-by-arrangement-with-georgia/index.json",
    "bundleManifest": "/en/news/articles/2022/12/21/pr22443-imf-executive-board-completes-first-review-under-the-stand-by-arrangement-with-georgia/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-26T01:45:55.152Z"
}