"We expect the debt to fall to around 45% this year," the deputy finance minister declared in the parliament.
It should be noted that the debt forecast against the country's GDP has been reduced. According to the current forecast, public debt will 50% of GDP by the end of 2022.
"Last year we started with a debt ratio of more than 60% against the GDP. During the year it became possible to reduce the debt by a considerable amount. The debt ratio decreased to 49.5%, which means a decrease of 10 percentage points. This year we expect the volume will be reduced to 45%. In the medium term it will be possible to reduce the debt to 41%, which is close to the level we had before the pandemic, "- said Kakauridze.
As of April 2022, the volume of Georgia's public debt is GEL 29.8 billion, of which GEL 5.9 billion is domestic and 23.9 billion is foreign debt. This is 46% of the planned GDP, or GEL 64.8 billion. Currently, the main reason for the decline in the ratio of public debt to GDP is the strengthening of the national currency, which reduces the volume of external debt in GEL. If 1) the economy grows by the planned 6% this year and 2) the lari maintains exchange rate stability, then the size of the country's external debt will be reduced to 45%.
