IMF Hails Georgia’s Economic Performance
The International Monetary Fund’s (IMF) mission, which visited Georgia on October 12-23 to review recent economic developments in Georgia, hailed the planned tax reforms, as well as welcomed the progress in the fiscal position and stabilized microeconomic situation.
The mission will recommend to the IMF Executive Board that the first review under the Poverty Reduction and Growth Facility Arrangement (PRGF) be completed, thus enabling Georgia to draw USD 20 million, according to a press statement issued by the IMF Tbilisi office on October 25.
“Georgia’s macroeconomic performance continues to be strong (as evidenced by the rapid growth of real GDP and low inflation), and several important structural reforms are underway. The mission was particularly pleased with the good progress in strengthening the fiscal position thus far in 2004, thanks to an impressive improvement in tax and customs administration. This has permitted a sizable reduction in domestic wage and pension arrears,” the press statement reads.
“The mission welcomed the proposed tax reform and the related government plans to further combat tax evasion and smuggling. It also welcomed the government’s plans to accelerate privatization and improve the business climate, while stressing the need to ensure transparency in asset sales procedures,” the statement says.
