📋 Tender Overview
Status: Proposed
Loan
The proposed program will help the government of georgia strengthen resilience to external shocks by improving the performance management of state-owned enterprises (soes), deepening local capital markets for effective public debt management, and enhancing the social protection system. the program will build on the foundation laid by earlier programs of the asian development bank (adb) in the country to improve fiscal resilience and social protection. the program is in line with adbs country partnership strategy for georgia, 2019-2023, and is also aligned with adbs strategy 2030 operational priorities (ops): (i) op1 on addressing remaining poverty and reducing inequalities; (ii) op2 on accelerating progress in gender equality; (iii) op3 on tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; and (iv) op6 on strengthening governance and institutional capacity.
Sound macroeconomic management. georgias economy has grown steadily since it attained upper middle-income country status in 2015, supported by reforms to liberalize the economy and strengthen transparency and accountability. georgias economy expanded at an average of 4.7% during 2011-2019, and gross domestic product (gdp) per capita reached $6,672 in 2022, making georgia an upper middle-income country according to the world bank. growth was driven by the external sector, with contributions from exports and spending on public infrastructure. with the onset of the coronavirus disease (covid-19) pandemic, the economy shrank by 6.8% in 2020, but real gdp growth rebounded to 10.5% in 2021, when domestic consumption became the main growth driver with the gradual winding down of the fiscal stimulus. the economy expanded by 10.2% in 2022, primarily driven by a notable increase in the number of russian citizens entering the country and robust export performance. however, economic growth is expected to moderate in 2023 and 2024. despite the government implementing strict monetary measures and reducing the fiscal deficit, demand-side factors have contributed to inflationary pressures. the deceleration of domestic demand coupled with more stringent macroeconomic policies are anticipated to mitigate inflationary pressures. substantial inflows of foreign capital have significantly narrowed the current account deficit, but it is projected to widen again in 2023 and 2024. adb projects growth to slow considerably in 2023, to 4.5%, because migrant and financial inflows are expected to subside, and as slower growth or recession in trade partners inhibits export growth and cuts money transfers. growth should reaccelerate to 5.0% in 2024 with continued gains in services.
the public financial management systems in georgia are strong and have improved with the implementation of the public financial management reform strategy, 2018-2022. robust treasury operations and cash management enable expenditures to be managed within the avai
