“In 2021 Georgia debt-to-GDP ratio will grow to 62%”- IMF

“In 2021 Georgia debt-to-GDP ratio will grow to 62%”- IMF

access_time2020-11-19 13:00:20

The International 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 the global 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 terms.


 “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%.


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