EBRD projects Georgian economy to grow 8% in 2022, 5% in 2023
Published on Wednesday, the report reads that the Georgian, Azerbaijani and Armenian economies “are enjoying some of their highest growth rates in years”. Photo: Nino Alavidze/Agenda.ge
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The European Bank for Reconstruction and Development has raised its economic growth forecast for Georgia, announcing it is expecting the Georgian economy to grow eight percent this year, "significantly higher” than the previously predicted three percent growth.
For next year, the bank’s report Regional Economic Prospect expects this trend to moderate further to five percent, in line with the previous forecast.
Published on Wednesday, the report reads that the Georgian, Azerbaijani and Armenian economies “are enjoying some of their highest growth rates in years”.
In Georgia, robust growth of 10.3 percent is supported by a pickup in tourism, which has almost reached pre-pandemic levels, and by an increase in money transfers (boosted by the temporary inflow of Russian businesses and technology-sector professionals). These trends have helped to cover Georgia’s trade deficit and supported the appreciation of the lari, leading to an increase in foreign reserves”, the report notes.
The EBRD said high energy prices were expected to support Azerbaijan’s economic growth in the near term.
The May forecast of GDP growth of 4.5 percent for 2022 and moderation to 2.5 percent in 2023 remains unchanged", reads the report.
Meanwhile in Armenia, the report forecasts robust growth of eight percent in 2022, up from a previous estimate of 4.5 percent.
The slowdown is expected to be less gentle, with a drop to four percent likely in 2023. However, the latest growth estimate for 2023 remains above the earlier projection of 2.5 percent", the report reads.
The EBRD said Azerbaijan was capitalising on high oil and gas revenues as a result of elevated prices and increased export revenues - but also on the strong performance of its non-energy sector - while Armenia and Georgia were benefiting from an inflow of Russian businesses and information and communication technology professionals boosting the service sectors of their small economies.
The Asian Development Bank projects the Georgian economy to grow seven percent in 2022, "driven by higher export and tourism revenue, a large inflow of money transfers, and strong private consumption", the bank said in a report on Wednesday.
The Georgian economy grew by 7.1 percent in the second quarter of 2022 year-on-year, while the gross domestic product deflator percentage change equalled to 8.2 percent, the latest data from the National Statistics Office of Georgia show.
Georgian Prime Minister Irakli Garibashvili on Monday announced amendments to the country’s budget bill to reduce its foreign debt to 40 percent of the gross domestic product, and budget deficit to 3.2 percent of the GDP, crediting the “unprecedented, double-digit” economic growth for enabling the moves.
Georgian Prime Minister Irakli Garibashvili on Monday said Georgia’s average real Gross Domestic Product increase of 10.3 percent between January and July was an “unprecedented economic growth worldwide” on the backdrop of Russia’s war in Ukraine, which he said had caused “serious economic challenges in Europe, and in the whole world”.
The Georgian economy grew by 10.5 percent in August and by 10.3 percent in the first eight months of 2022 year-on-year, the latest data from the National Statistics Office of Georgia show.
Georgian prime minister Irakli Garibashvili on Friday said the country’s "unprecedented" double-digit economic growth of 10.5 percent in August and 10.3 percent over the first eight months of 2022 was the result of the government's "reasonable policy”.
Following the double-digit growth of the Georgian economy in the first eight months of the year, the World Bank has raised its 2022 economic growth forecast for the country from the previously projected 5.5 percent to 8.8, the highest in the Europe and Central Asia region.
Levan Davitashvili, the Georgian Economy Minister, and Jürgen Rigterink, the visiting First Vice President of the European Bank for Reconstruction and Development, on Wednesday discussed the Bank’s activities in Georgia, its financial contributions over the years, and ongoing and planned large investment projects involving the country.