Asian Development Bank: Georgian economy to grow 4.5% in 2023, 5% in 2024
The Bank's annual economic publication said with fewer migrants from Russia and "receding financial inflows", the Georgian economic growth rate would slow down in 2023 "before recovering slightly in 2024". Photo: Nino Alavidze/Agenda.ge
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The Georgian economy is expected to grow by 4.5 percent in 2023 before reaching a five percent growth rate in 2024, a new report by the Asian Development Bank said on Tuesday.
The Bank's annual economic publication said with fewer migrants from Russia and "receding financial inflows", the Georgian economic growth rate would slow down in 2023 "before recovering slightly in 2024".
Kamel Bouhmad, the Officer-in-Charge of ADB’s Resident Mission in Georgia, said having benefited from a double-digit growth last year, Georgia "must now seek ways to secure more sustainable development".
To strengthen its position in tourism and services and maintain steady progress in building out key infrastructure, Georgia would benefit from increasing renewable energy production, continuing to support innovation, and accelerating environmental policy action”, Bouhmad said.
The report also noted inflation was expected to halve to six percent in 2023 from 12 percent in 2022 due to the “tight monetary policy” imposed by the National Bank of Georgia, as well as “weaker domestic demand” and “improved supply chains”. It said inflation would further fall to four percent next year, approaching the three percent target of the country’s central bank.
The Bank's other projections include:
- Investment is projected to expand by 5.5 percent in 2023 and 3.5 percent in 2024
- Budget deficit is projected to decline to the equivalent of 2.7 percent of GDP in 2023 and 2.5 percent in 2024
- The current account deficit is forecast to widen to fiver percent of GDP in 2023 and six percent in 2024
- Export growth is expected to decelerate to 10.7 percent, before increasing to 11.2 percent in 2024
- Money transfers are forecast to fall to $2.5 billion per year
The report also shares some recommendations for Georgia to further strengthen its environmental policies.
"Tax incentives can promote green growth by introducing climate-smart technologies in agriculture, while policies can encourage the shift to greener transport alternatives. Engaging the private sector can also help ensure greener and more sustainable private sector development in the country", it said.
Georgian Prime Minister Irakli Garibashvili on Monday said the Government had ensured a double-digit economic growth in 2021, in contrast to forecasts by “quite competent people” that said the country was headed for a “default” that year.
Georgian Prime Minister Irakli Garibashvili on Monday said the country’s account deficit between imports and exports, unemployment and poverty had all hit “historic lows” in the past year while the domestic economy was observed at an “all-time high” and GDP per capita at a “historic maximum”.
The Georgian economy grew 5.8 percent in February and 7.1 percent in the first two months of 2023, data published by the National Statistics Office of Georgia on Friday shows.
Georgian Finance Minister Lasha Khutsishvili on Thursday told the Parliament he was expecting maintenance of “positive dynamics” of economic growth in the country and even higher figures this year.
Georgian Finance Minister Lasha Khutsishvili on Tuesday reviewed the Government’s cooperation with the Asian Development Bank and projects supported by the ADB in the public sector of Georgia in a meeting with its officials.
Economic growth in Georgia is expected to ease to 4.4 percent in 2023 and reach five percent in 2024 and 2025, the Europe and Central Asia Economic Update of the World Bank said on Thursday.
Georgian Finance Minister Lasha Khutsishvili will join finance ministers, central bank governors, and government officials from Asian Development Bank member countries in the Bank’s 56th annual meeting opening tomorrow in Incheon, Korea.
The European Bank for Reconstruction and Development expects the economic growth in Georgia to moderate to five percent in 2023 and 5.3 percent in 2024.
Georgian Prime Minister Irakli Garibashvili on Friday told the Parliament the country’s unemployment rate had decreased to 17.3 percent this year and marked a “historic law”, adding 70,000 jobs had been created in the first quarter of 2023.