Making sound progress with the IMF
Overview:
Georgia’s strong economic progress in recent years has been pushed off track first by war with Russia and then the impact of the global financial crisis. While the currency weakened, deposits were withdrawn and foreign exchange reserves were depleted in recent months the authorities have now succeeded in stabilising the situation. They have won substantial international assistance (and have just secured the completion of the 3rd review of their IMF program) although this will not be able to stop economic growth remaining weak for some time. There are signs, however, that some of Georgia’s internal and external balances are now starting to correct. This should ultimately lay the groundwork for sustainable economic recovery. Foreign investors should continue to find Georgia attractive despite high geo-political risks.