Economic Transition in Georgia

1
Economic Transition in Georgia

• Robert Christiansen
• IMF Resident Representative,
• Tbilisi, Georgia
• April 21, 2007

2
1. Georgia Main Messages

• Georgias recent macroeconomic performance has
  been good.
• Managing aggregate demand and inflation are risk
  factors for the economy.
• Macroeconomic management is complicated by large
  capital inflows.
• The large current account deficit illustrates the
  major challenge facing policy makers.

3
2. Georgia GDP Growth, 2002-2007
9 -
4
3. Georgia Composition of GDP Growth
(Percent)
5
4. Georgia Twelve-Month Percent Change in CPI,
2004-2007
14.5
9.7
4.5
6
5. Georgia Fiscal Deficit and Reserve Money,
2003-2007
7
6. Georgia Foreign Direct Investment, 2003-2007
8
7. Georgia Nominal Exchange Rate, 2003-2007
2003
2004
2005
2006
2007
9
8.Georgia Current Account Deficit, 2003-2007
10
9.Georgia Exports and Imports Growth,
2003-2006
11
10. Georgia Major Export Commodities, 2006