The Parliament of Georgia is expected to approve the Georgia’s state budget for 2013 before 21 December 2012. Draft budget envisages GDP growth rate of 7% in 2013, which is in line with the economic performance of Georgia in recent years with real GDP up 7.2% and 7% in 2011 and 2012E, respectively. Budget revenues and expenditures are up 5.2% y/y. Budget deficit to GDP is estimated at 2.9%. The general government debt ratios are set to improve further to 32.8% of GDP from current 36%. The average inflation is expected at 4.5%.