IMF’s Alejandro Hajdenberg: Georgia Faces Uncertainty but Holds Strong Economic Buffers
“Despite recent developments, Georgia—like the global economy—continues to operate under particularly high uncertainty. However, the risks facing Georgia also present both challenges and opportunities,” said Alejandro Hajdenberg, Head of the International Monetary Fund (IMF) Mission to Georgia.
According to Hajdenberg, Georgia has very strong buffers in terms of fiscal space and the overall health of its financial system.
“The country’s fiscal position is solid. Budget indicators remain strong, and economic performance during the first four months of the year shows that projected targets—such as the 34% revenue-to-GDP ratio—are on track. Despite global and domestic pressures, Georgia maintains resilience. Key risks stem from global trade tensions, the ongoing war in Ukraine, and emerging sanctions that could indirectly affect Georgia. Nevertheless, Georgia’s strong fiscal foundation and sound financial system position it well to absorb such shocks,” he said.
Hajdenberg emphasized that Georgia must now focus on policies that foster long-term and inclusive development.
“Despite strong economic performance and improvements in per capita GDP and poverty reduction, challenges remain. Structural reforms are essential to sustaining growth and enhancing inclusivity. Issues such as stagnating unemployment—particularly in agriculture—and inefficient land resource management require attention. Investments in infrastructure, better coordination with regional partners, and strengthened corporate governance and anti-corruption efforts are crucial.”
Regarding monetary policy, Hajdenberg noted that the National Bank of Georgia (NBG) is pursuing a data-driven approach, which should continue.
“We encourage the NBG to prioritize the adequacy of international reserves. As for monetary policy communication, President Turnava has addressed this, and we support filling vacant positions on the NBG’s Board to ensure consistent governance. Strengthening institutional governance remains a priority, and we have already provided specific recommendations,” he concluded.
