The International Monetary Fund (IMF) expects to mobilize Foreign Direct Investments (FDI) in tradable sector.
Georgia continues to promote trade integration. Free Trade Agreements (FTAs) will help mobilize FDI in tradable sectors, improve competitiveness, reduce external imbalances and generate more balanced growth, – the IMF declared, which recently completed the first review in Georgia.
The IMF notes in the report: in addition to the Deep and Comprehensive Free Trade Area (DCFTA) with the European Union (EU)—where the authorities continue to make progress at implementation, Georgia signed FTAs with the European Free Trade Association (EFTA) and with the People’s Republic of China in 2017 (Box 2).
The authorities are also seeking to expand the FTA with Turkey and establish new FTAs with India, the United States, and other countries.
To promote market access, the authorities will create an ECA under the PF, to be financed with resources from the PF and a budgetary transfer (0.15 percent of GDP).
The authorities agreed that any future support from the government should come through the state budget. The authorities have agreed for ECA to undertake only insurance operations and be subject to insurance supervision and to internal and external annual audits.