The International Monetary Fund raised Georgia’s economic growth forecast for 2023 by one percentage point, from 4 to 5%. The relevant statement was made by the James John, Mission Chief of the International Monetary Fund.

“Looking ahead, growth is projected to converge to its potential rate of a little above 5% in 2023, while inflation would remain below the NBG’s 3% target, reflecting the factors described above, including a continued tight monetary policy stance with positive real interest rates. Over the medium term, growth is expected to remain close to potential, supported by infrastructure investments and an expected improvement in global economic and financial conditions.

Inflation is forecast to be close to the target in 2024. Given high uncertainty regarding global economic and financial developments and political conditions, policies should remain focused on entrenching macroeconomic and financial stability and maintaining the momentum for structural reforms”, - said James John.

He also said that the country’s economy had “performed strongly since the pandemic, reflecting limited adverse spillovers from Russia’s war in Ukraine and prudent macroeconomic policies”: “Buoyant tourism and a surge in immigration, financial inflows, and transit trade triggered by the war in Ukraine have boosted growth and fiscal revenues, and strengthened the current account balance and the GEL”.