Georgia’s brokerage bank projects 8% growth for economy in 2022
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”. Photo: Nino Alavidze/Agenda.ge
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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.
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.
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.
The Georgian economy is projected to grow 5.5 percent in 2022 and next year, followed by a 5 percent growth in 2024, the June edition of the World Bank’s Global Economic Prospects report has said.
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The estimated real Gross Domestic Product of Georgia grew by 2.6 percent in April 2022 year-on-year, while the average real GDP increased by 10.8 percent between January-April, the latest data from the National Statistics Office of Georgia show.
Remittances to Georgia from abroad equalled $308.1 million in April, marking a 58.8 percent increase compared to the same period of last year, the National Bank of Georgia revealed on Monday.
Georgian Prime Minister Irakli Garibashvili on Monday highlighted the record-high monthly figure hit by the country’s exports in May, pointing to the $504 billion of goods exported amid the challenges created by the conflict in Ukraine.
The nominal Gross Domestic Product amounted to ₾14,35 billion in the first quarter of 2022, the latest data from the National Statistics Office of Georgia show. "The real GDP increased by 14.9 percent year-on-year, while the GDP deflator rose by 8.7 percent", said Geostat.
The Georgian economy grew by 11.6 percent in May and by 11.2 percent in the first five months of 2022 year-on-year, the latest data from the National Statistics Office of Georgia show.
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