Georgia’s economic performance has improved, but risks to the outlook remain. The economic recovery is gaining momentum, inflation is projected to decline starting in early 2018, and the external position has strengthened.
Revenue overperformance provides room for additional capital spending and VAT repayments in 2017. The banking sector remains liquid, profitable, and well capitalized. Despite the positive outcomes, the authorities need to remain vigilant and sustain reform efforts to address structural obstacles to growth.