02.Jun .2020 12:47

IMF Predicts Decline of FDI by 19% in Georgia

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According to the updated assessment of the International Monetary Fund, the Fund predicts decline of foreign direct investment by 19% in Georgia in 2020. That means reduction of $ 241 million in investments.

According to the updated forecast, the International Monetary Fund predicts a decrease of $ 1.8 billion in foreign exchange inflows to Georgia in 2020. Consequently, the balance of payments deficit will increase by 11% of GDP due to the crisis. The organization writes that Georgia will balance this imbalance with funds attracted from donor organizations.

The IMF's updated macroeconomic forecast is as follows:

• Reduction of exports - 24%;
• Reduction of imports of goods -21.1%;
• Reduction of exports of services (including tourism) - 55.7%;
• Reduction of import services - 60%;
• Reduction of remittances - 15%;
• Reduction of foreign direct investment -19%.