Asian Development Bank maintains Georgia's economic growth outlook for 2021 at 4.5%
The report forecasts inflation in Georgia will reach six per cent and 4.5 per cent in 2020 and 2021, respectively, higher than the bank’s previous estimates in its Asian Development Outlook, released in April. Photo: Nino Alavidze/Agenda.ge.
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Georgia is forecast to return to economic growth of 4.5 per cent in 2021 thanks to expected recoveries in tourism, private consumption, investment, and net exports, following a contraction this year due to the coronavirus pandemic, says a new Asian Development Bank (ADB) report, the Asian Development Outlook 2020 Update.
The ADB forecasts a five per cent contraction in economic growth in 2020 in view of the adverse effects of COVID-19 on the economy and investment climate, but a rebound in 2021. Real gross domestic product (GDP) declined by an estimated 5.8 per cent in the first half of this year against 4.8 per cent growth in the same period of 2019.
Georgia has adopted several measures to mitigate the impact of COVID-19 on the economy including easing bank regulations and tax collection, broadening social packages, a cautious reopening of businesses and the promotion of internal tourism. The recovery can be maintained by prolonging certain tax and credit concessions, stimulating private sector development, and strengthening health institutions in preparation for a possible second wave", said ADB Country Director for Georgia Shane Rosenthal.
The report forecasts inflation in Georgia will reach six per cent and 4.5 per cent in 2020 and 2021, respectively, higher than the bank’s previous estimates in its Asian Development Outlook, released in April.
The possibility of a prolonged disruption of tourism and external demand and supply chains continues to weigh on the growth forecast, as does the prospect of a slowdown in government processes following parliamentary elections in October, says the ADB.
The IMF has forecast a sharper decline in world economic growth than was expected just two months earlier, saying that the coronavirus pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and recovery is projected to be more gradual than previously forecast.
The real gross domestic product (GDP) will decline in 2020 in Georgia and is estimated to be -4.8 per cent, with projected recovery of growth at 4 per cent in 2021, reads the World Bank’s recent report Global Economic Prospects 2020.
The European Bank for Reconstruction and Development (EBRD) forecasts Georgian economic growth to fall 5.5 per cent in 2020 mainly as a result of a reduction in the country’s tourism sector due to coronavirus restrictions on travelling.
Economic growth in Georgia is projected to reach 3 per cent in 2021, while it will be reduced by 4 per cent in 2020, says the International Monetary Fund (IMF) in its World Economic Outlook. It says that the COVID-19 pandemic is inflicting high and rising human costs worldwide and the necessary protection measures are severely impacting economic activity.
The COVID-19 pandemic’s health impact has been well-contained, but it has had a significant impact on economic activity, reads the statement of the mission Chief for Georgia at the International Monetary Fund (IMF) Mercedes Vera-Martin.
The lari (GEL) has depreciated against the US dollar by about two per cent, following an increased number of new coronavirus cases in Georgia and the upcoming parliamentary elections, said National Bank of Georgia (NBG) Head Koba Gvenetadze.
Georgian Finance Minister Ivane Matchavariani has been elected chairman of the board of governors of the Asian Development Bank for one year, announces the Ministry of Finance of Georgia.
The National Bank of Georgia (NBG) sold $40 million during its foreign exchange auction today. The average weighted bid rate was 3.2641. The NBG Head Koba Gvenetadze said last week that the central bank will sell more than $200 million by the end of this year.
The financial system of Georgia was prepared to meet the shock of the Covid-19 pandemic and maintained resilience thanks to the financial stability policy that has been implemented in recent years, reads the National Bank of Georgia's (NBG) Financial Stability Committee report published today.
The Georgian economy is projected to contract by six per cent in 2020, while in 2021 economic growth is forecast to reach four per cent, says the latest edition of the World Bank’s Economic Update for the region, released today.
The Georgian economy is gradually returning to a positive development track, says Georgian Economy Minister Natia Turnava, citing the recent statistics of the external trade of Georgia which shows that in September 2020 the exports of Georgia increased 8.6 per cent compared to the same month of last year.
The International Monetary Fund (IMF) has upgraded its World Economic Outlook which now says that the Georgian economy will grow five per cent in 2021 and the average growth rate will be 5.5 per cent in 2021-2025. The IMF says that the nominal GDP per capita in terms of purchasing power parity will exceed $20,000 for the first time in 2024 in Georgia, and $21,000 by 2025.
The International Monetary Fund (IMF) expects gross domestic product growth to rebound to 4.3 per cent in 2021 'as the effects of the pandemic fade, but considerable downside risks remain', says the IMF staff team led by Mercedes Vera Martin who conducted virtual discussions from October 5 to November 9, 2020, on the seventh review under the Extended Fund Facility (EFF) arrangement.
The Asian Development Bank (ADB) and Georgia's Credo Bank (Credo) signed a $4 million loan to support agricultural micro, small and medium-sized enterprises, low-income farm households, small businesses run by women, and agri-tourism in Georgia.