Monetary Fund (IMF) is forecasting ratio of Georgia's public
debt to GDP tend to decrease to 54% in 2025, Selim
Cakir, the fund's resident
representative in Georgia, says.
At the same time, already in
2023 it will reduce to 60%.
“The coronavirus pandemic has plunged
economy into deep
contraction that negatively affects
the economies of all countries, including Georgia, where due to the government
policy, the blow was not as strong as it could have been,” he says.
Selim Cakir, notes that to finance various programs to boost the country’s economy and people, the Georgian
government was forced to take loans from international donors on rather soft
“In 2021, debt-to-GDP ratio will grow to 62%, but gradually it will begin to decline, and under our
calculations, in 2025 it will decrease by 54%. The pandemic will end, economic
activity will grow as well as the budget and population revenues. All this will
return the economy will be back on track and the state will cut costs, ” Selim
Chakir points out.
According to the constitution
of Georgia, the country's fiscal deficit cannot exceed 3%, and the debt-to-GDP ratio should be no more than 60%.