Asian Development Bank projects Georgian economy to grow 3.5% in 2021
The ADB projected Georgia’s gross domestic product growth to accelerate to 6% in 2022 as a full reopening of the economy and expected recovery in tourism boost travel and commerce. Photo: Nino Alavidze/Agenda.ge.
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The Georgian economy is expected to grow by 3.5% in 2021, rebounding with the gradual lifting of the Covid-19 pandemic restrictions and revival of domestic demand, reads the Asian Development Bank (ADB) Outlook 2021.
The ADB projected Georgia’s gross domestic product (GDP) growth to accelerate to 6% in 2022 as a full reopening of the economy and expected recovery in tourism boost travel and commerce.
Following the ADB's forecast inflation will slow to 5% in 2021 and 3.5% in 2022, although this remains above the National Bank of Georgia’s inflation target of 3%. The current account deficit is projected to narrow to 10% of GDP in 2021 and 7% in 2022 as the merchandise trade balance and tourism gradually improve.
Image: ADB.
With extensive government support to offset food supply disruptions, agriculture is expected to grow by 3.2% in 2021 and 3.9% in 2022. Investment is projected to contract in 2021 as private investment falls by 7.5% but should expand next year.
Exports are projected to grow by 7.1% in 2021 before ramping up by 20.4% in 2022 as the global recovery strengthens, while imports are projected to expand moderately by 3.6% in 2021 and by 8.9% in 2022", says the ADB.
The ADB report highlighted the need for Georgia to elevate agriculture development by improving farm knowledge, connectivity, financial access, and technological capability. Establishing modern agroprocessing, improving market access, and attracting private investment could foster competition and improve export potential.
The government should also continue encouraging investment in irrigation systems to enhance productivity, improve the quality of its agricultural exports, and meet the standardisation requirements of the European Union and other advanced markets.
Georgian Deputy Finance Minister Mikheil Dundua says that according to the economic growth forecast of the International Monetary Fund the Georgian economy will grow by 34.5% in 2021-2026 and with this rate Georgia ranks first in Europe.
The executive board of the International Monetary Fund (IMF) has just completed the eighth review of Georgia’s economic reform programme supported by a four-year extended arrangement under the Extended Fund Facility (EFF ).
The latest ‘Europe and Central Asia Economic Update’ published by the World Bank reads that the Georgian economy is unlikely to recover to pre-Covid levels until late 2022. The World Bank says that the Georgian economy is projected to expand to 4% in 2021 and then to firm to 5% in 2022.
A year into the coronavirus pandemic Georgians remain concerned about the state of the economy and the impact of Covid-19, reads poll results released today by the National Democratic Institute (NDI or the Institute) and CRRC Georgia.
The Georgian economy grew 4% year-on-year in March, posting growth for the first time in a year. However average real gross domestic product (GDP) declined 4.2% in the first quarter of 2021 year-on-year, show preliminary data from the National Statistics Office of Georgia (Geostat).
In April 2021 the consumer price index increased by 0.9% compared to the previous month, while the annual inflation rate amounted to 7.2%, according to the latest inflation data from the National Statistics Office of Georgia (Geostat).
Georgian Finance Minister Lasha Khutsishvili has said that the 4% growth rate of the economy that was observed in March will increase 'even more' in April, announces the Ministry of Finance of Georgia.
The estimated real gross domestic product (GDP) growth rate in June 2021 equaled 18.7 per cent year-on-year and 12.7 per cent in January-June of 2021 year-on-year, the preliminary data of the National Statistics Office of Georgia (Geostat) show.