{
  "title": "IMF Executive Board Concludes 2026 Article IV Consultation with Georgia",
  "publication": "IMF News, June 10, 2026",
  "sourceUrl": "https://www.imf.org/en/news/articles/2026/06/10/pr-26197-georgia-imf-executive-board-concludes-2026-article-iv-consultation",
  "canonical": "https://www.imf.org/en/news/articles/2026/06/10/pr-26197-georgia-imf-executive-board-concludes-2026-article-iv-consultation",
  "overlayPath": "/en/news/articles/2026/06/10/pr-26197-georgia-imf-executive-board-concludes-2026-article-iv-consultation/index.md",
  "summary": "IMF Executive Board Concludes 2026 Article IV Consultation with Georgia",
  "publishDate": "2026-06-10",
  "sections": [
    {
      "heading": "Main findings and recent developments",
      "content": "- Real GDP expanded by 7.5 percent in 2025 and remained strong in early 2026.\n- Inflation rose above target, reaching 5.9 percent in April 2026.\n- Fiscal and external buffers strengthened: reserves reached the IMF’s adequacy threshold and public debt declined below 35 percent of GDP.\n- The economy remained resilient amid heightened global uncertainty, including from the war in the Middle East.\n- The authorities consented to publication of the Staff Report prepared for the consultation."
    },
    {
      "heading": "Baseline projections and scenarios (assumes Middle East war is resolved soon)",
      "content": "- Growth:\n  - Projected to moderate to 6.5 percent in 2026.\n  - Gradually converging to medium-term potential rate of 5 percent by 2028.\n- Inflation:\n  - Expected to return to target by mid-2027.\n- Public debt and reserves:\n  - Public debt expected to remain near current levels with continued prudent monetary and fiscal policies.\n  - Reserve coverage projected to strengthen further."
    },
    {
      "heading": "Executive Board assessment and policy guidance",
      "content": "- General assessment:\n  - Directors commended good macroeconomic performance, sound macroeconomic management, strong growth, improved fiscal and external buffers, and a sound financial sector.\n  - Noted inflation above target and persistent structural challenges.\n  - Urged preserving macroeconomic stability while advancing reforms to sustain growth and spur job creation.\n- Monetary policy:\n  - Recent policy rate hike considered appropriate.\n  - Monetary policy should remain appropriately tight and data‑dependent to bring inflation durably back to target.\n  - Preserve exchange rate flexibility as a shock absorber.\n  - Accumulate reserves as conditions allow.\n  - Support for strengthening governance framework of the NBG to reinforce institutional credibility and policymaking.\n- Fiscal policy:\n  - Authorities’ commitment to fiscal discipline welcomed; medium‑term fiscal plans seen as appropriate to keep public debt at prudent levels.\n  - Emphasized need to streamline tax expenditures, strengthen mining taxation, and further improve tax administration.\n  - Enhance spending efficiency to create room for priority spending.\n  - Targeted support recommended for vulnerable groups if downside risks materialize.\n  - Advance state‑owned enterprise governance reforms to reduce fiscal risks.\n- Financial sector and supervision:\n  - Banking system resilience welcomed.\n  - Call for continued vigilance amid risks: rapid credit growth, unhedged foreign exchange exposures, non‑bank financial activities, and digital assets.\n  - Encourage further efforts on bank resolution and crisis management arrangements, consolidated supervision, and digital‑asset oversight.\n- Structural reforms and competitiveness:\n  - Need to address structural constraints to sustained inclusive growth and job creation.\n  - Encourage reforms to address high youth unemployment, skills mismatches, and weak work incentives:\n    - Strengthen vocational education and public employment services.\n    - Better align social assistance with work incentives.\n    - Support high‑productivity sectors.\n  - Support continued investment in logistics, trade facilitation, infrastructure, and deeper regional integration.\n  - Stress strengthening anti‑corruption and judicial institutions while maintaining a predictable market‑friendly policy environment."
    },
    {
      "heading": "Key statistics and medium-term projections (selected figures from Table 1)",
      "content": "- Real GDP (annual percentage change):\n  - 2025 Actual: 7.5\n  - 2026 Projection: 6.5\n  - 2027 Projection: 5.7\n  - 2028 Projection: 5.0\n- Nominal GDP (in billion of laris):\n  - 2025 Actual: 104.6\n  - 2026: 116.9\n  - 2027: 128.5\n  - 2028: 139.8\n  - 2029: 151.8\n  - 2030: 165.0\n  - 2031: 179.3\n- Nominal GDP (in billion of U.S. dollars):\n  - 2025 Actual: 38.1\n  - 2026: 43.5\n  - 2027: 48.1\n  - 2028: 52.6\n  - 2029: 57.6\n  - 2030: 63.2\n  - 2031: 69.2\n- GDP per capita (in thousand of U.S. dollars):\n  - 2025: 9.7\n  - 2026: 11.1\n  - 2027: 12.3\n  - 2028: 13.4\n  - 2029: 14.7\n  - 2030: 16.1\n  - 2031: 17.7\n- CPI:\n  - Period average 2025: 3.9\n  - Period average 2026 projection: 5.3\n  - Period average 2027 projection: 3.4\n  - Period average 2028 projection: 3.0\n  - CPI end-of-period 2025: 5.4\n- Consolidated government operations (in percent of GDP):\n  - Revenue and grants 2025: 27.0; 2026: 26.6; 2027: 26.3; 2028: 26.2; 2029: 26.1; 2030: 26.0\n  - o.w. Tax revenue 2025: 24.2; 2026: 24.3\n  - Total Expenditure 2025: 28.4; 2026: 28.9; 2027: 28.6; 2028: 28.5; 2029: 28.3; 2030: 28.2\n  - Current expenditures 2025: 22.4; 2026: 21.7; 2027: 21.6; 2028: 21.5; 2029: 21.1; 2030: 21.0\n  - Net acquisition of nonfinancial assets 2025: 6.0; 2026: 7.2; 2027: 7.0\n  - Net lending/borrowing (GFSM 2001) 2025: -1.5; 2026: -2.3; 2027: -2.2\n  - Augmented net lending/borrowing 1/ 2025: -1.4\n- Public debt (in percent of GDP):\n  - 2025 Actual: 34.3\n  - 2026: 33.6\n  - 2027: 32.8\n  - 2028: 32.5\n  - 2029: 31.9\n  - 2030: 31.7\n  - o.w. Foreign-currency denominated 2025: 23.2; 2026: 19.6; 2027: 18.1; 2028: 16.6; 2029: 15.0; 2030: 13.7\n- Money and credit:\n  - Credit to the private sector 2025: 13.1; 2026: 13.8; 2027: 10.9; 2028: 8.7\n  - In constant exchange rate 2025: 14.0\n  - Broad money 2025: 16.5; 2026: 13.5; 2027: 12.2; 2028: 11.3\n  - Excluding FX deposits 2025: 25.5\n  - Deposit dollarization (in percent of total) 2025: 47.7; 2026: 47.4; 2027: 47.2; 2028: 47.0; 2029: 46.8; 2030: 46.5; 2031: 46.3\n  - Credit dollarization (in percent of total) 2025: 42.4; 2026: 42.2; 2027: 42.0; 2028: 41.8; 2029: 41.6; 2030: 41.4; 2031: 41.2\n  - Credit to GDP (in percent) 2/ 2025: 65.9; 2026: 67.0; 2027: 67.7\n- External sector (in percent of GDP; unless otherwise indicated):\n  - Current account balance (in billions of US$): 2025: -1.0; 2026: -2.5; 2027: -2.7; 2028: -3.2; 2029: -3.4\n  - Current account balance (percent of GDP): 2025: -2.6; 2026: -5.0; 2027: -4.5; 2028: -4.7; 2029: -4.8\n  - Trade balance 2025: -17.9; 2026: -19.0; 2027: -18.7; 2028: -18.9; 2029: -19.1\n  - Terms of trade (percent change) 2025: -0.2; 2026: 0.0; 2027: -0.5; 2028: -0.6; 2029: -0.7\n  - Gross international reserves (in billions of US$): 2025: 6.2; 2026: 6.3; 2027: 6.9; 2028: 8.3; 2029: 8.8; 2030: 9.2\n  - In percent of IMF ARA metric 3/: 2025: 100.0; 2026: 104.9; 2027: 108.9; 2028: 115.4; 2029: 117.9\n  - In months of next year's imports 2025: 3.2; 2026: 2.9; 2027: 2.8\n  - Gross external debt 2025: 58.9; 2026: 51.7; 2027: 43.0; 2028: 38.7; 2029: 34.5; 2030: 30.7"
    },
    {
      "heading": "Institutional and procedural notes",
      "content": "- It is expected that the next Article IV consultation with Georgia will be held on the standard 12‑month cycle.\n- Footnotes and data sources in the Staff Report: sources listed as Georgian authorities; and Fund staff estimates. Definitions:\n  - 1/ Augmented Net lending / borrowing = Net lending / borrowing - Budget lending.\n  - 2/ Banking sector credit to the private sector.\n  - 3/ IMF's adequacy metric for assessing reserves in emerging markets.\n\nPress Release No. 26/197 — IMF Communications Department, June 10, 2026.\n\n---\n\n\n References\n\n- Georgia and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- www.imf.org/en/countries/geo\n- http://www.IMF.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2026/06/10/pr-26197-georgia-imf-executive-board-concludes-2026-article-iv-consultation"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2026/06/10/pr-26197-georgia-imf-executive-board-concludes-2026-article-iv-consultation/index.md)",
    "[Structured JSON version](/en/news/articles/2026/06/10/pr-26197-georgia-imf-executive-board-concludes-2026-article-iv-consultation/index.json)",
    "[Bundle manifest](/en/news/articles/2026/06/10/pr-26197-georgia-imf-executive-board-concludes-2026-article-iv-consultation/bundle-manifest.json)",
    "Published: June 10, 2026",
    "Real GDP expanded by 7.5 percent in 2025 and remained strong in early 2026.",
    "Inflation rose above target, reaching 5.9 percent in April 2026.",
    "Fiscal and external buffers strengthened: reserves reached the IMF’s adequacy threshold and public debt declined below 35 percent of GDP.",
    "The economy remained resilient amid heightened global uncertainty, including from the war in the Middle East.",
    "The authorities consented to publication of the Staff Report prepared for the consultation.",
    "Growth:",
    "Inflation:",
    "Public debt and reserves:",
    "General assessment:",
    "Monetary policy:",
    "Fiscal policy:",
    "Financial sector and supervision:",
    "Structural reforms and competitiveness:",
    "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):",
    "CPI:",
    "Consolidated government operations (in percent of GDP):",
    "Public debt (in percent of GDP):",
    "Money and credit:",
    "External sector (in percent of GDP; unless otherwise indicated):",
    "It is expected that the next Article IV consultation with Georgia will be held on the standard 12‑month cycle.",
    "Footnotes and data sources in the Staff Report: sources listed as Georgian authorities; and Fund staff estimates. Definitions:",
    "[Georgia and the IMF](http://www.imf.org/external/country/GEO/index.htm)",
    "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[www.imf.org/en/countries/geo](https://www.imf.org/en/countries/geo)",
    "[http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2026/06/10/pr-26197-georgia-imf-executive-board-concludes-2026-article-iv-consultation/index.md",
    "json": "/en/news/articles/2026/06/10/pr-26197-georgia-imf-executive-board-concludes-2026-article-iv-consultation/index.json",
    "bundleManifest": "/en/news/articles/2026/06/10/pr-26197-georgia-imf-executive-board-concludes-2026-article-iv-consultation/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-26T04:43:42.957Z"
}