IMF raises forecast for Georgia GDP growth in 2023 to 5%

TBILISI. May 11 (Interfax) - The International Monetary Fund (IMF) has raised its 2023 economic growth forecast for Georgia from 4% to 5%, IMF mission chief James John told reporters in Tbilisi on Thursday.

He also suggested that this year inflation would be below the 3% target level set by the National Bank of Georgia. This is the result of, among other things, the tight monetary policy pursued by the National Bank and positive real interest rates, the IMF said.

The head of the IMF mission noted that the IMF's investment in infrastructure and the expected improvement in the global economic and financial environment would contribute to economic growth in Georgia and lower inflation. He predicts that in 2024 inflation will remain close to the National Bank's target level.

John added that, according to the IMF, economic policy in Georgia should focus on strengthening macroeconomic and financial stability.

The new IMF forecast for Georgia's GDP growth, according to specialists from the Ministry of Economy, is in line with the forecast indicators of the country's budget for 2023. In the first quarter of this year, GDP growth reached 7.2%, according to Gruzstat.

In April, the World Bank also improved its forecast for Georgia - now it expects the Georgian economy to grow 4.4% in 2023, while previously it had forecast 4% growth. The forecast from the European Bank for Reconstruction and Development assumes GDP growth of 5%, and the Asian Development Bank, 4.5%.