Renewable Energy Business Overview slide image

Renewable Energy Business Overview

-6% -8% -10% -12% 2014 2015 Source: MoF 0% 20% 30% 2010 40% 50% 60% Public debt Sources: MoF Overall Balance (IMF Modified), % of GDP -2% -4% -2.7% -2.8% -3.0% -2.7% -2.3% -2.0% 2016 2017 2018 2019 2020 -9.3% 2021F 2022F -6.7% 2023F External public debt to GDP, % Total public debt to GDP, % 59.9% 52.2% 48.5% 47.5% 42.2% 34.8% 2024F 2017 DEBT AND FISCAL DEFICIT ON COURSE FOR CONSOLIDATION 2018 2019 2020 2021F -3.0% -2.7% -2.5% -4.4% 2025F 2022F 2023F 2024F 2025F FISCAL SUPPORT TO MODERATE Fiscal expenditures grew by 5% y/y in real terms in 9M21 (14% in nominal), including a 20% growth (30% in nominal) in 2Q21, contributing the most to the surge in consumption and, subsequently, GDP; Fiscal support has begun moderating since the 2nd half of 2021, as the fiscal deficit (overall balance) fell by 11.4% y/y in 9M21 (compared to a 57% increase y/y in 1H21); - The 2022 budget draft law lays out a consolidation path to return to the fiscal rule bounds ā€“ public debt is projected to fall to 52.2% of GDP by the end of the year, while the overall fiscal deficit (IMF program definition) will return to the 3% ceiling by 2023; āž¤ The operating deficit is set to switch to surplus again from 2021, i.e. revenues are expected to be greater than current expenditures; Current expenditures are planned to fall to 22% of GDP in 2022, a significant cut compared to 26.2% of GDP in 2020 and close to the pre-crisis level of 21.4% in 2019; Capital expenditures are set to remain high and reach 8.2% of GDP in 2022. 8 GEORGIA CAPITAL
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