Georgia: First Review under the Extended Fund Facility and Request for Modification of Performance Criteria-Press Release; and Staff Report

IMF Staff Country Reports, December 7, 2017

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Canonical URL: Georgia: First Review under the Extended Fund Facility and Request for Modification of Performance Criteria-Press Release; and Staff Report

Publication date: December 7, 2017
The program is on track with all end-June 2017 performance criteria and structural benchmarks met.
IMF staff supports the authorities’ request for:
- completion of the First Review under the Extended Fund Facility (EFF), and
- the modification of three quantitative performance criteria (PCs).
Economic outlook notes:
- Economic activity has strengthened on the back of stronger growth in main trading partners.
- Fiscal overperformance and efforts to address structural weaknesses have helped boost confidence.
- The economic recovery is gaining momentum.
- Inflation is projected to decline starting in early 2018.
- The external position has strengthened.

Program implementation:
- All end-June 2017 performance criteria met.
- All end-June 2017 structural benchmarks met.
Macroeconomic environment:
- Strengthened economic activity linked to stronger growth in main trading partners.
- External position described as strengthened.
Fiscal and structural factors:
- Fiscal overperformance contributed to improved confidence.
- Authorities undertaking efforts to address structural weaknesses.
Inflation outlook:
- Projection: inflation is projected to decline starting in early 2018.

Subjects: Banking, Credit, External debt, Financial institutions, Loans, Money, Public debt, Taxes, Value-added tax
Keywords: authorities' effort, authority, broad money, CR, Credit, exchange rate, First Review of Georgia's performance, floating exchange rate regime, GDP deflator, Global, growth prospect, inflation targeting framework, ISCR, Loans, short-term debt, Value-added tax