Investment and Growth Strategy

-10% -12% 2014 -6% -8% 0% 20% 30% 2010 40% 2011 50% 2012 60% 2013 2014 General Government Debt, External (% of GDP) General Government Debt, Total (% of GDP) PRELIMINARY ESTIMATES SHOW PUBLIC DEBT SHRINKING BELOW PRE- COVID LEVELS AND THE FISCAL DEFICIT FALLING UNDER 3% OF GDP IN 2022 GENERAL GOVERNMENT DEBT (% OF GDP) OVERALL BALANCE (IMF MODIFIED)*, % OF GDP -2% -2.3% -2.1% -2.8% -2.7% -4% -3.0% -2.7% 2018 -9.3% -6.1% 2015 2016 2017 2018 2019 60.1% 47.6% 41.8% 39.7% 36.4% 32.0% 29.8% 2020 2021 -2.3% -2.3% -2.9% -2.8% *CALCULATED AS NET ACQUISITION OF FINANCIAL ASSETS SUBTRACTED FROM PRELIMINARY ESTIMATES OF NET BORROWING. Georgia Capital PLC | Source: Ministry of Finance 2023F 2024F 2025F 2026F 2022* 2023F 2024F 2025F FISCAL SUPPORT HAS CONTINUED MODERATING 23.5% -2.2% 2026F Fiscal support has continued moderating, as the overall fiscal balance (consolidated budget) posted a surplus of GEL 98 mn in 1Q23, up by 154% y-o-y; The operating surplus (difference between current expenditures and current revenues) reached GEL 840 mn, up by 23% y-o-y, in 1Q23; On the expenditure side, current expenses grew by 10.6% y-o-y and capital expenses increased by 14% y-o-y in 1Q23; On the revenue side, tax revenues grew by 12.7% y-o-y in 1Q23, facilitating a 12.4% growth in overall fiscal revenues; Preliminary estimates show the overall deficit (net borrowing) reaching 2.5% of GDP in 2022, with the IMF-modified deficit* standing at 2.9%, below the 3% deficit rule; Government debt is estimated to have fallen to under 40% of GDP in 2022, lower than the pre-COVID level of 42% in 2019, with external debt falling to under 30% of GDP, down from 32% in 2019. 80 GEORGIA CAPITAL

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