Final Meeting with IMF Mission

Final Meeting with IMF Mission

Final Meeting with IMF Mission

The FINANCIAL -- “International Monetary Fund gave a positive evaluation of the economic reforms implementation process, the majority of which were assigned in our program with the IMF. High rate of economic growth, which in 2017 were reported in Georgia and continues in 2018. This is a firm foundation to execute the obligations that the Government has undertaken and maintain the successful progress in terms of the reform implementation,” – the First Vice Prime Minister of Georgia, the Minister of Economy and Sustainable Development Dimitry Kumsishvili stated at the briefing dedicated to the success completion of the second round of the discussions on the IMF’s Extended Financing Facility (EFF).

According to him, for the fast economic development of the country it is necessary for the public to feel that the government is pursuing a proper and consistent economic policy.

First Vice Prime Minister, Dimitry Kumsishvili expressed gratefulness the members of the IMF mission and personally to Ms. Mercedes Vera-Martin for the hard work and the achieved results. Kumsishvili noted that “the program that is being implemented in cooperation with the IMF, is fully based on the Georgian Government’s 4-point reform plan. The IMF totally supports the reform program by the country’s political leadership, its vision of economic policy and, at the same time, the IMF is our partner in the reform-implementation process.”

“The successful completion of the second discussion confirms that the IMF supports economic policy of the Government of Georgia. The Government’s 4-point plan is targeted at ultimately effective usage of the human resources, supporting the private sector as the main driver of the economic growth, rapid development of the infrastructure and provision of the efficient services to the population,” – the First Vice Prime Minister noted.

Dimitry Kumsishvili also talked about the main factors of the economic growth. “In 2017, we have achieved a 5% economic growth, which is significantly higher than the forecasts at the start of the program.”

According to the First Vice Prime Minister, the private sector plays a leading role in economic growth. In 2017, business sector created 39 thousand new jobs. In the same period, the turnover in the private sector was increased by 19%. In addition, Dimitry Kumsishvili highlighted that high economic growth is accompanied by the stability towards the foreign shocks and decreases the vulnerability. “This assessment is based on the positive dynamics of the current balance of payments. The account deficit in 2017 has reached one of the lowest marks of the recent years and amounted to 8.7% percent of the GDP,” – Dimitry Kumsishvili said.

The First Vice Prime Minister stressed on the positive dynamics regarding the direct foreign investments in the country. “The DFI volume in Georgia in 2017 reached the record-breaking level and amounted to 1 861.9 million USD, which is by 16.2% higher indicator compared to the previous year. Investor trust and positive expectations are further rising to the business environment of our country, which gives significant impulse for reinvestment.”

According to Dimitry Kumsishvili, in 2017 there was a significant, 129.6% increase of the reinvestment amounting to 712 million USD. According to the First Vice Prime Minister, the increase in reinvestment was preconditioned by the profit tax reform that gave the businesses sector the opportunity to implement new investments, expand business and create new jobs.

“Positive dynamics is obvious this year as well. In February, according to the preliminary assessment, economic activity equals to 5.5% while in January-February – to 4.9%. We witness positive dynamics in almost every field of economy. Within the first three month of this year, export of good has been increased by 28% compared to the data of the same period of 2017,” – Dimitry Kumsishvili noted.