Georgia’s brokerage bank projects 8% growth for economy in 2022

TBC Capital, a Georgian brokerage, advisory and investment bank, on Monday forecast an eight percent growth for the country’s economy in the ongoing year.

In its June Macro Update, the financial institution named tourism as the main indicator of the growth in the country, saying it was expected to “more than double”.

Among its bases for increasing the figure from 5.5 to 8 percent, the Bank also named a “stronger outlook” for transit services exports, as well as growth in remittances and credit. 

• World Bank: Georgian economy to grow 5.5% in 2022 and 2023, 5% in 2024

Additionally, it pointed out a “slight, but still strong” projection for exports of goods, import growth with high investment goods imports, improved projection for foreign direct investments inflows and a “very strong” real gross domestic product growth in April. 

The financial institution projects the inflation rate in Georgia to be at 9.5 percent or “slightly above” the figure this year.

• May 2022: annual inflation rate at 13.3%

As for the national currency, TBC Capital has not assumed rate hikes due to reasons including inflation being “predominantly supply-driven with expected moderation”, and reliance on higher National currency rates, at least in the near term.

Founded in 1999 as the investment arm of TBC Bank, TBC Capital is a wholly-owned investment banking subsidiary and licensed brokerage firm.