Georgian central bank governor projects economy to grow 5% in 2021

The head of the National Bank of Georgia Koba Gvenetadze projects the Georgian economy will grow 5% in 2021.

We think that by 2021 the economy can grow by 5%. Do not forget that a fiscal stimulus is also planned at a fairly high level, while lending activity is maintained. We have to take into account that it is very difficult to make predictions during the pandemic and there is a lot of uncertainty", Gvenetadze said.

As for 2020, Gvenetadze said that this year the economy will shrink 5%.

According to the data of 10 months, the economic growth is -5.1% and we expect a similar decline in November-December. Also, since the restrictions imposed recently are lighter than the ones imposed in the spring, I think this drop of economy will be close to the rate we have already had in 10 months of 2020. However, it should be noted that credit activity is quite high, which helps the economy and domestic demand", Gvenetadze said.

• Georgian gov’t introduces further coronavirus restrictions until Jan. 31

The 2021 state budget was previously planned with a 4.3% economic growth forecast, however Georgian Finance Minister Ivane Matchavariani said that there was 'a significant decline in revenue’ in November and January and February will be 'severe' because of the new restrictions announced by the government on November 26, which will affect economic growth next year.

• Georgian Finance Minister revises 2021 growth outlook down to 4%

Matchavariani projected the economy would experience 4% growth next year.