The IMF mission, which visited Georgia on February 24-March 7, while noting that Georgia?s macroeconomic performance continues to be strong, it also stated that the current estimate for real GDP growth – 8.4% – ?may be overstated because of methodological problems and legalization of previously unrecorded transactions,? according to the press release issued by the IMF Tbilisi office on March 9.
?Fiscal performance in 2004 was impressive, especially the improvement in revenue collections stemming from stronger tax enforcement,? the press release reads.
The IMF mission did, however, also note the rise in 12-month consumer price inflation from 3.6% in June 2004 to 7.5% by the end-December and then to 9.2% at the end – January 2005.
The IMF mission, which held discussions with the Georgian leadership for the second review under the government’s IMF-supported economic program, noted that large capital inflows, prompted mostly by ?greater investor confidence? have complicated the conduct of monetary policy since early 2004.
The mission also welcomed the government’s determination ?to intensify efforts to strengthen the energy sector, add momentum to privatization, civil service reform and modernization of the financial system, and institutionalize fiscal reforms.?