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Georgian government is following the reasonable macroeconomic policy. As a result, despite tough situation in the region, Georgian government managed to effectively resolve the challenges. Georgia is at the leading position in the region in terms of overcoming the low economic growth. According to various international studies Georgian government is carrying out correct macro-economic policy.
Georgia’s macro-economic environment is positively assessed by the Global Competitiveness Index of 2015-2016 the World Economic Forum. There are several components showing Georgia’s improvement in its macroeconomic environment according the GCI from 2012 to 2016.
- The Ratio of the Government Budget Balance to the GDP – 45th place in 2016;
- The Ratio of Gross National Savings to the GDP – 96th place;
- Annual Inflation Rate – improved by 62 positions from the 115 position in 2012 to the 53rd position in 2016;
- The Ratio of General Government Debt to the GDP – 50th position;
- Country’s Credit Rating – 84th position;
Georgia has improved all components included in the Global Competitiveness Index and reflected it in the Macroeconomic Environment. One of the main progress Georgia made from 2012 to 2016 in Macroeconomic Development ranking side was improvement in Government Budget Balance as % of GDP and as a result country took 45th position compared to 87th position. Monetary freedom is part of the index of economic freedom and the development in this field should also be underlined. According to the Index of Economic Freedom of the Heritage Foundation, monetary Freedom in Georgia has improved and the country shifted from 109th position in 2012 to 57th position in 2016.
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The article is based on the information of The World Economic Forum.
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