The International Monetary Fund has updated its macroeconomic forecast for Georgia. According to a report submitted by the head of the IMF mission, James John, the fund forecasts 7.7% economic growth in Georgia this year.
This is twice as much as the fund's previous forecast of 3.5%. The revision of the forecast was conditioned by higher-than-expected economic growth, as Georgia had 44.8% economic growth in April and 25.8% in May.
According to the IMF, the size of the Georgian economy will reach 56.9 billion GEL this year.
According to the report published today, in 2022, the Georgian economy should grow by 5.8%.
Like the IMF, the Georgian government expects 7.7% economic growth in the country this year. This is the indicator of the expected growth of the year in the draft budget adjustment.
Along with the improved economic growth parameter, the IMF is also improving Georgia's other economic forecasts. In particular, the fund estimates that the ratio of public debt to GDP, which was previously projected at 60.8%, will be reduced to 55.3%.
The current account deficit forecast has also been improved, which will be minus 9.9% instead of minus 10.9%.
Inflation expectations have deteriorated. If until now the IMF had forecast average inflation of 3.8% in Georgia in 2021, according to a new report, the country will have average inflation of 7.3% this year, and by the end of 2021, annual inflation will reach 9.4%.
