The Georgian authorities would like to thank the Fund team for fruitful discussions during the mission visit. They broadly agree with staff’s assessment of the main risks facing the Georgian economy, especially those related to vulnerabilities stemming from external spillovers. The authorities continue to attach great importance to making use of Fund advice. They have implemented most of the recommendations from the 2011 Article IV consultation, including in public financial management, monetary policy and ensuring financial stability. The authorities value the sustained support they receive in the process of transformation and modernization of the Georgian economy.
Following the first peaceful democratic transfer of power in recent history, the authorities are strongly committed to sustaining rapid economic growth, and making it more socially inclusive and broad-based. Strengthened social protection, further support of private initiatives through the establishment of investment funds, and focus on modernizing the agricultural sector are high on the authorities’ policy agenda. At the same time, they are committed to preserving fiscal sustainability, pursuing prudent monetary and exchange rate policies, maintaining financial stability, and reducing vulnerabilities in the external position.