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IMF: After the Recession in 2013, Economic Activity in Georgia is Growing

According to experts of the International Monetary Fund (IMF), after the slowdown in 2013, economic activity has quickened in 2014, which will lead to an increase of 5% – said the head of the IMF mission Chief for  Georgia  Mark Griffiths.

According to him, the engine of the economy in 2014 was the increase in consumer demand, private investment and exports. In addition, a level of political risks has decreased, since Georgia has established trade cooperation with Russia. Inaddition, remittances from Southern Europe haveincreased.

According to the forecast of the mission, in 2015 GDP growth will amount  5% and, although it has certain risks associated with regional tensions.

“There are also risks associated with the slow pace of economic growth in the eurozone, as this could reduce the flow of investment into the country. However, there are factors that can have a positive impact on the economy of the country – first of all, it’s  the decline in international oil prices, which willallow to achieve higher growth and reduce the current account deficit. This is very important in a situation where an  external debt and current account deficits are among the most serious weaknesses of the economy, “- said Griffiths.

“Since 2015 deficit should start reducing, and a fiscal consolidation, exchange rate flexibility and the Association Agreement with the EU will contribute to it. The government will once again provide the flexibility of the national currency to maintain the country’s competitiveness and strengthen the security the economy from external shocks, “- said the representative of the IMF.