World Bank’s 2022 Georgian economic growth set at 10%, forecast for 4% in 2023, 5% in 2024
Recovery in domestic demand, coupled with the rebound of tourism receipts post Covid-19, and a surge in money transfers from Russia have been named as main reasons for the 2022 performance. Photo: Nino Alavidze/Agenda.ge
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The Georgian economy’s 2022 growth is projected to be at 10 percent in the final tallying of numbers for the past year, with a "much stronger” domestic economic activity observed compared with expectations in the aftermath of Russia’s invasion of Ukraine, the January report of the World Bank Global Economic Prospects has said.
However the growth is expected to slow to four percent in 2023 and stabilise around five percent in 2024, the report also said.
Recovery in domestic demand, coupled with the rebound of tourism receipts post Covid-19, and a surge in money transfers from Russia have been named as main reasons for the 2022 performance.
On the other hand, the expected slowdown in growth this year will be "largely reflecting a base effect from strong growth in 2022, as well as slowdown in economic partners such as the European Union, and diminishing money inflows", it also said.
The following table shows the Europe and Central Asia country forecasts from the institution:
Image: World Bank
The World Bank also shared its inflation projections for Georgia, saying it was expecting to see a slow but continued decline in inflationary figures while the domestic monetary policy remained tight.
The report also mentioned tourism and remittances in Georgia could be "negatively affected" as the Russian economy was expected to "suffer a more pronounced slump in 2023" due to the protracted conflict and international sanctions.
On the upside, money inflows could last longer than initially expected, and Georgia could benefit from some trade diversion as transport corridors are reconfigured", it also pointed out.
The World Bank also said growth in Russia - the region’s largest economy - was projected to decrease to -3.5 percent in the final 2022 numbers, and to -3.3 percent in 2023.
For the three other countries of the South Caucasus, the Armenian economy is forecast to show a 10.8 percent growth in 2022 statistics and a 4.1 percent growth in 2023; Azerbaijan is expected to post a 4.2 percent growth for 2022 before having a 2.8 percent growth this year; Turkey’s economy is estimated to show a 4.7 percent growth in 2022 and then see the figure decrease to 2.7 percent in 2023.
The Georgian economy is projected to grow 5.5% in 2022 and 5% in 2023, the January edition of the World Bank’s report Global Economic Prospects 2022 says.
Georgia’s gross domestic product per capita will reach $8,000 in 2023 while the current year is on track to close with 10 percent economic growth, Prime Minister Irakli Garibashvili said on Tuesday as part of his end-of-year summary of the Government’s work.
The Georgian economy grew by 10 percent in the first 10 months of 2022 with the real gross domestic product growth showing an 8.3 percent increase over the previous year, the latest data from the national statistics office shows.
The Georgian economic growth is expected to slow to 2.5 percent in 2022 due to ongoing hostilities in Ukraine, the World Bank’s Europe and Central Asia Economic Update said.
Koba Gvenetadze, the President of the National Bank of Georgia, took part in the annual Central and Eastern European Forum of Euromoney, a magazine covering global capital markets, between Tuesday and Wednesday in Vienna, the Bank said on Wednesday.
Georgia received $535.3 million from abroad in December 2022, which is 133.2 percent more than the amount in December 2021, the National Bank of Georgia said on Monday.
The Georgian economy is forecast to grow 5.2 percent in 2023 and 4.6 percent in 2024, the World Economic Situation and Prospects report by the United Nations said on Thursday.
The Georgian economy grew by 11 percent in December and 10.1 percent over the past year, the latest data from the National Statistics Office of Georgia has shown.
Georgian Economy Minister Levan Davitashvili on Tuesday said the "positive trends" of the country's economic growth from 2022 were expected to be maintained this year due to its multifaceted form over the past 12 months.
Economic questions and cooperation between the World Bank and Georgia were discussed on Wednesday between the Georgian Finance Minister Lasha Khutsishvili and Koen Davidse, the Executive Director of the World Bank.
Georgian Deputy Economy Minister Vakhtang Tsintsadze on Monday said the country’s economic growth rate had proved an “important factor” in reducing unemployment to its “historic low” of 17.3 percent, creating new jobs and combating poverty in the country.