World Bank predicts growth in Georgian economy

The World Bank (WB) has projected Georgia's economy will grow for the next three years.

The WB estimated the Georgian economy would improve by 6.3% in 2014-2015 and 6.5% in 2016 as a result of additional export demand due to stronger high-income country growth.

In its annual report Global Economic Prospects on the world economy WB predicted the improvement in current account balance (as a percentage of GDP) by 0.7% and will reach 7.1% than projected 7.8%.

As for Georgias GDP, WB predicted 2.5% growth in 2013.

In comparison to 21 countries across the region Georgia ranked in the leading position fall behind Turkmenistan 10.1%, Uzbekistan 7.4%, Tajikistan 7%, Kazakhstan 6%, Moldova 5.5%, Armenia 5% and Azerbaijan 4.9%. The WB data revealed that Ukraine will record a 1.1% decline.

In terms of regional overview, the bank reports that Europe and Central Asian countries the growth is strengthened in 2013. This was due to higher demand from Europe and strong growth in energy commodity-exporters.

"The non-energy commodity exporters suffered declines in metal and agricultural prices. Strong growth in high-income Europe will benefit most countries with strong trade ties, WB said.

However, the prospects were weaker for those countries struggling with high fiscal and external deficits.

In the report the bank said richer countries appeared to be "finally turning a corner" after the financial crisis.

"That is expected to support stronger growth in developing economies, the report read.

Developing countries growth rates are expected to increase from 4.8% in 2013 to 5.3% in 2014, 5.5% in 2015 and 5.7% in 2016.