Georgia Debt Management Performance Assessment
After a prolonged economic downturn in the early 1990s Georgia has succeeded in improving economic performance. The Government of Georgia undertook large-scale reforms that encouraged increased output growth. Over the period 2003-2012 the Georgian...
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| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/162981578588020053/Georgia-Debt-management-performance-assessment http://hdl.handle.net/10986/33188 |
| Summary: | After a prolonged economic downturn in
the early 1990s Georgia has succeeded in improving economic
performance. The Government of Georgia undertook large-scale
reforms that encouraged increased output growth. Over the
period 2003-2012 the Georgian economy grew at an average
annual rate of 6.6 percent. Privatization, new simplified
tax codes introduced in 2005 and 2010 which reduced the
complexity and number of taxes, the cancellation of import
duties on approximately 90 percent of goods, and an 88
percent reduction in the number of licenses for doing
business resulted in increasing foreign investment inflows
into the country. Large external public borrowing to finance
energy imports during the first years of independence
resulted in a quick accumulation of external debt stock,
which exceeded 80 percent of Gross Domestic Product (GDP) by
the end of 1994. As a result of strong performance in
1996-1998 when the country's economy grew at 10 percent
annually on average, the external debt declined sharply to
below 58 percent of GDP. However, depreciation of the Lari
against the US dollar during the Russian crisis diminished
these achievements. The declining of the debt-to-GDP ratio
resumed in 2000. From June 17-26, 2013, a World Bank tea |
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