Tax revenues are rising mainly due to high inflation over the past two years, as the economy has grown by only 3% over that period, - according to an economic growth report published by the IDFI.

According to the report, tax revenues increased by 17% compared to the previous year reaching USD 9.5 billion in the three quarters of 2021. In 2020, the growth -4.7% y-o-y. The pandemic's anti-crisis plan has led to tax delays and a shrinking economy.

"By 2020, the ratio of public debt to GDP has reached a record 63%. In 2021, the ratio of external debt to GDP is still high and stands at 53%, which is 10 pp less than in 2020. This is mainly due to the maintenance of a stable exchange rate and economic growth. Armenia is the leader in the region in terms of debt-to-GDP ratio (62%), while Russia has the lowest rate (18%)," the IDFI wrote.

In addition, in 2021, the Georgian economy exceed the levels of 2019 by 3% on the background of significant growth in foreign debt and high inflation.

"Despite the fact that Georgia's economic growth in 2020 was -6.8%, GDP increased by 3% in 2021, compared to 2019. External debt increased by 10.5 billion in the last two years (+ 50%). Total inflation exceeded 15% in the same period. Georgia's economy is expected to grow to 6% in 2022," the IDFI noted in the report.