FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
GEORGIAN STOCK EXCHANGE
CAPITAL MARKET DEVELOPMENT
AND ECONOMIC OUTLOOK
Mark Griffiths, IMF Mission Chief for Georgia
commenting on 2013 economic outlook for
Georgia noted: “GDP growth could reach 6
percent. This forecast is subject to risks. On
the upside, there is the possibility of increased
trade with Russia and of new sources of foreign
investment. However, if the current uncertainty
persists or demand from trading partners falters,
then growth could be lower. Strong domestic
policies and communication are needed to
instill confidence and to reassure markets that
the new government is committed to prudent
macroeconomic policies and further enhancing
Georgia’s business-friendly environment.
“Inflation has remained very low in 2012 due
to the earlier nominal appreciation of the lari
against currencies of Georgia’s main trading
partners, and declines in food prices over
the last 12 months. As the impact of these
temporary factors wears off, the mission
projects that inflation will increase from -0.5
percent in November to 4 percent by end-
2013, and gradually move toward the medium
term inflation objective of the National Bank of
Georgia (NBG). The mission considers that the
monetary policy stance, including the recent cut
in official interest rates, is broadly appropriate
and consistent with the projected rise in
inflation.
“The draft 2013 budget is socially oriented yet
prudent. It increases social spending to protect
the most vulnerable, while continuing with the
path of fiscal consolidation. The fiscal deficit is
projected to decline to 2.8 percent of GDP in
2013. This will facilitate external adjustment and
create room for countercyclical fiscal policy.
This is consistent with the medium-term strategy
to bring the deficit down to about 1π percent
of GDP by 2016 and should keep Georgia’s
government’s debt-to-GDP ratio on a firm
downward path.”
As for the business climate in the country, the
country has made remarkable strides over
the last few years—the World Bank’s Doing
Business Index ranks Georgia as 9th in the
world, first in Eastern Europe and Central Asia
and first among lower middle-income countries.
In the program of the Georgian Dream - the
2012 parliamentary elections winner coalition
and respectvely in the new Government’s
plans important place is devoted to further
improvement of the investment environment
and implementetion of the pension reform in
the country. This provides grounds for optimism
and new momentum for development of the
Georgian capital market.
Key Information Contacts
National Bank of Georgia www.nbg.gov.ge
Ministry of Finance of Georgia www.mof.ge
Georgian Central Securities Depository www.gcsd.ge
Georgian Corporate Directors Association www.gcda.ge
CONTACT INFORMATION
Contact Name Mr. George Loladze
E-mail [email protected]
Website www.gse.ge
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