he International Monetary Fund (IMF) praised Georgia for their positive economic indicators. According to the Ministry of Economy, First Vice Prime Minister of Georgia, Minister of Economy and Sustainable Development, Dimitry Kumsishvili met with the Head of International Monetary Fund (IMF) Mission, Mercedes Vera-Martin and other members of the mission. The mission is currently carrying out the second review of the Advanced Financing Mechanism program in Georgia.
The program, which started in 2017, is part of a joint effort by the Georgian government and the IMF to improve the economic efficiency through new financing methods. Besides discussions regarding the program, the meeting entailed a thorough debate on macroeconomic indicators and current structural and economic reforms.
“Georgia completed 5% of real economic growth by 2017 and carried on with 5.5% growth in February 2018, which, as of the first two months of 2018, constituted a 4.9% growth on the whole,” reads the statement put out by the Ministry of Economy. First Vice Prime Minister of Georgia, Dimitry Kumsishvili presented the IMF mission with the positive figures of Georgia’s economic growth. “Positive indicators are posed by positive dynamics in a number of directions, including turnover of enterprises, increased exports, number of tourists and money transfers,” the statement continues.
Commenting on the figures, the IMF delegation positively evaluated the reforms and the continuous growth rate of the Georgian economy. It acknowledged the positive impact of the reforms in strengthening business activity.
Alongside discussions on economic performances, Kumsishvili presented the IMF the latest assessment of the international rating company FITCH. In particular, the rating of Georgia has changed from Stabile to Positive, a fact extremely important for investors.
According to the Ministry, the first Vice Prime Minister emphasized the profit tax reform that helped to increase the volume of direct foreign investments in Georgia. In particular, the growth of reinvestment in 2017 amounted to 129.6% ($401.9 million) as a result of which the total reinvestment volume totaled $712.1 million.
“The share of reinvestment equaled 38.2% of total foreign direct investment and increased by 18.8% compared with the previous year. The increase in reinvestment clearly indicates the growth of investor confidence and positive expectations towards the country’s business environment,” cites the statement the Minister, and continues: “The increase in reinvestments has contributed to the profit tax reform that allows the private sector to direct their earnings towards new investments and enhances business activity as it further increases the attractiveness of the country’s investment.”