Azim Sadikov, IMF Resident Representative in Georgia, hopes that Georgia’s economic growth will be 2% this year. Azim Sadikov stated while presenting the IMF new forecast.
He noted that it would be fair to compare Georgian economy with Caucasus and Central Asian countries.
Sadikov names three global shocks, which have an impact on the region: They are as follows:
- Price reduction on oil, decline from $110 – $50 on 1 barrel. (It had an impact on oil exporter countries; price drop on consumer products).
- Russian economy drop. (IMF predicts that the environment will be improved, but not sharply, the growth will be over 1,5%).
- Currency fluctuations – sharp alter of exchange rate.
According to Sadikov, consumption and investments are declined in Georgia, the volume of money remittances is law as well. However, there are positive aspects, economic growth is still sustainable and exceeds 2.5%, which is more optimistic than international organizations have predicted.
“We hope that Georgian economic growth will exceed 2%. Georgia has better history due to business environment and association agreements. It is expected that Georgia will have better growth than other countries of the region”, Sadikov notes.
He touched on the issue of the lari devaluation and made a focus on the devaluation of GEL and currencies of Turkey and Russia because of trade relations with those countries.
“Despite all, devolution of the lari was more velvety than the currencies of other countries of the region, because in Georgia the drop did not happen at once”, IMF’s representative notes.