EBRD cuts forecast for Georgia

The European Bank for Reconstruction and Development (EBRD) cut its growth forecasts for Georgia on Monday, citing lower public and private investment and policy uncertainty related to elections.

The EBRD cut its 2013 forecast for Georgia to 2.0% from 3.0%, and dropped its 2014 projection to 4.0% from 5.0%.

"Agriculture and trade have been buoyant, after Russia started to re-open access of Georgian foodstuffs to its market. Economic growth is expected to accelerate in 2014, provided both the political uncertainty subsides after the presidential elections and the improvement of Russian-Georgian commercial relations continues, reads the latest Regional Economic Prospects report.

EBRD also cutits growth forecasts for central and eastern Europe and North African countries, citing weak demand for their exports and unfinished reforms.

The EBRD cut its 2013 forecast for central and eastern Europe to 2.0 percent from 2.1 percent, and dropped its 2014 projection to 2.8 percent from 3.1 percent.