Government expects 3.6% economic growth in 2013

The Georgian Government has forecast last years economic growth to reach 3.6% and reach 6.3% in 2014, as predicted by the World Bank earlier this month.

The latest estimate by the Government was revealed at the fourth meeting of the Economic Council, the board of economic profile ministers head by the Prime Minister, on January 20.

Finance Minister Nodar Khaduri presented Prime Minister Irakli Garibashvili with the latest economic figures and said regardless of the economic slowdown in the first quarter of 2013, the countrys GDP had increased in October and November by 4.1% and 7.8% respectfully.

"The economic growths are determined by growth in the agriculture (9%), finance (7.6%), real estate (6.3%), processing industry (4.5%) and trade (4.5%) sectors last year and we consider these industries will further increase next year, Khaduri said.

The Economic Council mulled over the countrys current economic issues and stressed that last year saw an unprecedented increase in export. In particularly, 11 months of export increased by 20% and exceed $2.6 billion USD.

In addition, the negative trade balance decreased by $550 million USD (11%).

As for Foreign Direcct Investment, Economy Ministry Giorgi Kvirikashvili said political instability in the country had resulted in a 3% increase in investment, which comprised of 700 million GEL.

The Economic Council was created from an initiative of PM Garibashvili to plan the economic politics and strategy, analyse the economic risks and investment environment, monitor current projects, develop the foreign economic policy, and analyse the economic processes abroad and the possibility for foreign economic connections.