Finance Minister: Georgia falls short of forecasted economic growth

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Georgia's Finance Minister Nodar Khaduri said on 5 July, the country's economic growth will fall short of forecasted six percent. Talking at the closing ceremony of IMF Institute's training course at Georgia's Academy of Ministry of Finance, Khaduri noted that the economic growth does not depend on investments alone.

"This depends on processes going on in our trade partner countries. If our exports to Turkey decrease, the country's economic growth will not be high," said the finance minister.

According to Khaduri, he meets with potential investors daily but "investments, unfortunately, do not bring results overnight."

In response to Tabula's question whether the 2013 budget will be revised because of the slowdown in economic growth, the finance minister said that "all promised budget expenditures will be made and there will be no need to cut spending." However, he has not specified where the budget will receive revenues from.

Two days ago, the Minister of Economy and Sustainable Development, Giorgi Kvirikashvili, made a similar statement saying the forecasted economic growth of six percent is "unrealistic."

The Georgian government forecasted the economic growth of six percent in 2013. Over the past few months, however, the IMF, the EBRD and the Fitch Rating significantly scaled down the indicators of the country's economic growth. The National Bank of Georgia cut the forecast as well.


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