IMF mission chief James John on Monday said the Georgian economy has performed “strongly” in 2022 as adverse spillovers from the war in Ukraine thus far have generally been less impactful than expected earlier.

“Buoyant tourism revenues, a surge in immigration and financial inflows triggered by the war, and a rise in transit trade through Georgia come on the heels of a robust recovery from the pandemic and have lifted growth and fiscal revenues, strengthened the current account balance and the lari, and supported accumulation of foreign currency reserves,” John went on.

He noted that credit growth has slowed, but inflation remains elevated, reflecting still high commodity prices and strong domestic demand. Quick and appropriate NBG action has helped limit the impact of the war on the financial sector, including by requiring banks to adhere to relevant sanctions.

The International Monetary Fund today said it had reached an agreement with Georgia that will allow for the disbursement of $30 million.

“The agreement is subject to approval by IMF management and consideration by the Executive Board, which is expected in December 2022. Completion of the review will make SDR30 million (about $38 million) available to Georgia. The authorities are treating the program as precautionary,” reads the statement.