Growth is expected to rebound to 4.3% in 2021 as the pandemic fade's effects, but with considerable downside risks to the outlook - reads the statement issued by Mercedes Vera-Martin after a virtual review mission of the IMF. According to the International Monetary Fund, the revision in the 2021 growth outlook, from 5% at the October 2020 World Economic Outlook, is attributed to the uncertainty associated with the regional conflict and the increased COVID-19 cases in Georgia.
The Fund projects that medium-term growth is projected to remain unchanged at 5¼ percent supported by infrastructure spending and sustained structural reforms to increase productivity and enhance private sector-led growth. In addition to this, macroeconomic policy discipline and donor support would keep reserves adequate over the medium term.
"Advancing the structural reform agenda remains essential to support the recovery, limit the economic scarring from the pandemic, and achieve stronger, resilient, and more inclusive growth, needed to improve the standards of living for all Georgians. Enhancing connectivity, facilitating access to finance, advancing the education reform, and implementing the recently approved corporate insolvency framework would increase Georgia's competitiveness. The mission also supports the authorities' plans to reform state-owned enterprises, which should create the conditions for a more efficient public sector and boost private sector development" - reads the statement issued by Mercedes Vera-Martin after a virtual review mission.
