Georgia’s economic activity performed better than expected, with the economic growth of 4.8% in 2017, according to the International Monetary Fund mission, which visited Georgia last week to discuss recent economic and financial developments and progress in structural reforms.
"Economic developments in 2017 were positive. Growth reached 4.8% driven by consumption and external demand. Rapid growth in exports, tourism, and remittances supported economic activity and narrowed the current account deficit to 7% of GDP through 2017Q3," IMF mission director to Georgia Mercedes Vera-Martin said.
She added that inflation in 2017 was above the target due to higher excise rates on fuel and tobacco, and reached 6.7% by end-of-year. "In response to a pickup in inflation expectations towards the end of the year, the National Bank of Georgia increased the policy rate by 25 basis points, to 7¼ %, in mid-December. As expected, annual inflation declined to 4.3% in January 2018," Agenda.ge cited the statement as saying.
The mission discussed with Georgian authorities progress towards implementing structural reforms to support higher, sustainable, and more inclusive growth.
According to the IMF mission, the authorities in Georgia have taken steps to strengthen revenue administration, support capital market development, improve financial safety nets, and have submitted to Parliament draft laws on public-private partnership and pension reforms.
