World Bank raises 2022 economic growth forecast for Georgia from 5.5% to 8.8%
The update comes in the institution’s update for the region, released today, however the report also projects growth in Georgia to slow down in 2023 to an estimated 4.2 percent. Photo: Nino Alavidze/Agenda.ge
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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.
The update comes in the institution’s update for the region, released today, however the report also projects growth in Georgia to slow down in 2023 to an estimated 4.2 percent.
The deceleration reflects weakening momentum after a strong rebound in 2022, the slowdown in the European Union, and a sharper-than-expected contraction of 2023 output in Russia", the bank has said.
Sebastian Molineus, the World Bank regional director for the South Caucasus, said the Georgian government should remain "fiscally prudent" and use "any additional revenues to pay off some of its fiscal burden and to act in a fiscally prudent manner".
Image: World Bank
"When it comes to Georgia itself, we see a growth rate of 8.8 percent, which right now is the highest in the entire Europe and Central Asia region, largely based on an increase in domestic demand, increase in net money transfers, as well as a strong tourism receipts and remittances as well”, he noted.
“With this said, we believe that both the government and the National Bank of Georgia need to remain vigilant. Certainly, there needs to be a tightening of monetary policy, should the inflation still tick upwards", he said.
The European Bank for Reconstruction and Development also raised its economic growth forecast for Georgia recently, announcing it was expecting the country’s economy to grow eight percent this year, "significantly higher” than the previously predicted three percent growth.
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 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 showed. Prime minister Irakli Garibashvili credited the "unprecedented" double-digit economic growth to his government's "reasonable policy”.
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”.
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.
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.
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.
Georgian economy minister Levan Davitashvili on Thursday said Georgia was expected to have a higher economic growth this year compared to estimations made by international financial institutions at the start of the crisis stemming from the war in Ukraine.
Lasha Khutsishvili, the Georgian finance minister and Koba Gvenetadze, the head of the country’s National Bank, within the framework of the visit to the United States, held meetings with the executive director of the International Monetary Fund Paul Hilbers, the director of the Middle East and Central Asia department of IMF, Jihad Azour, and the director of the IMF fiscal affairs department, Vítor Gaspar.
The economic trends of Georgia, current and future reforms, as well as macroeconomic indicators and forecasts, were discussed on Friday by the Georgian economy minister Levan Davitashvili and James John, the mission chief of the International Monetary Fund.
Georgia has been ranked 35th among 184 countries in the Economic Freedom Index of the Washington-based Heritage Foundation think-tank, with the country placed ahead of 11 European Union member states and all candidate countries aspiring for membership in the bloc.
The Economic Freedom Index of the Washington-based Heritage Foundation think-tank has featured Georgia among the top 40 countries in the world for Government integrity, placing it ahead of 15 member states of the European Union and NATO.
Georgian Parliament Speaker Shalva Papuashvili on Tuesday said his country’s “impressive leap” from 54th to 17th in the latest Transparency in the Time of War Index was “another evidence” the European Union’s refusal to grant Tbilisi its membership candidate status last year had been “far from [being] a merit-based decision”.