EBRD projects Georgian economy to grow 5% in 2023, 5.3% in 2024
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. Photo: Nino Alavidze/Agenda.ge
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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.
The Bank’s Regional Economic Prospects forecast, published on Tuesday, said growth prospects remained “clouded by high geopolitical risks”, but a “potential start of the EU accession process in the coming years could invigorate growth-enhancing reforms” for the country.
Robust double-digit economic growth began to moderate at the beginning of 2023. Construction, trade and financial services were expanding in the first months of 2023, but the manufacturing and real estate sectors contracted”, the EBRD said.
Image: EBRD
The Bank also named reasons leading to the recent reduction of the inflation rate in Georgia.
Foreign capital inflows covered the trade deficit, while domestic currency appreciation with timely monetary policy tightening from the central bank contributed to a steady reduction of inflation to 5.3 percent in March 2023”, it said.
The EBRD’s projections come as the International Monetary Fund shared its forecast for the growth of the Georgian economy, saying it could grow by five percent this year.
The latest report by the Asian Development Bank, published in April, said the Georgian economy was expected to grow by 4.5 percent in 2023 before reaching a five percent growth rate in 2024.
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 Finance Minister Lasha Khutsishvili on Thursday welcomed an increase in the International Monetary Fund’s estimation of 2023 economic growth for Georgia to five percent, and the institution’s allocation of about $40 million in support of the country.
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.
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.
Commercial banks in Georgia loaned ₾44.77 billion ($17.3 bln) and received deposits of ₾43.09 billion ($16.7 bln) in April 2023, the latest data from the National Bank of Georgia shows.
The Georgian economy grew 7.5 percent in April and 7.3 percent in the first four months of 2023, data published by the National Statistics Office of Georgia on Wednesday shows.
Prices of certain food products and non-alcoholic beverages decreased month-on-month in Georgia in May, while prices of alcoholic beverages, tobacco, miscellaneous goods and services increased, the latest inflation data published by the National Statistics Office of Georgia on Friday shows.
Georgian Prime Minister Irakli Garibashvili on Friday presented an annual report of the Government’s work to the Parliament, where he said the Georgian economy had grown by 7.5 percent over the first five months of 2023 and called the result “quite a strong achievement” amid the Russia-Ukraine war and the “threat of use of nuclear weapons”.
Georgian Prime Minister Irakli Garibashvili on Friday told the country’s Parliament inflation was expected to further decline in the country after being observed at 1.5 percent in May, a 0.1 percent reduction compared to the previous month.