Posted: 5 years ago

Prime Minister: Current Account Deficit is Key Source of Poverty

The current account deficit is one of the key sources of poverty in Georgia, Georgian Prime Minister Mamuka Bakhtadze noted. The narrowing deficit in balance of payments is one of the reasons why Fitch rating company has improved Georgia’s credit rating, Prime Minister Mamuka Bakhtadze noted.

“We have managed and decreased the deficit of payment of balance. The historical problem of our economy is that Georgia has become an imports-dependent country. We have managed and changed this heaviest reality and this signifies we follow correct policy. This very deficit is one of the key sources of poverty in Georgia”, Mamuka Bakhtadze noted.

The Fitch report positively appraises the narrowed deficit, but, according to the same document, the deficit of balance of payment still remains high in Georgia. Despite negative external factors, this deficit declines and the figure will be 7.5% of GDP. The current deficit account is expected to exceed 7% till 2020 and this figure considerably exceeds the averaged indicator of the deficit of countries with BB credit rating”, the Fitch report reads.