World Bank projects Georgian economy to grow 5.2% in 2024

The Georgian economy has been projected to grow 5.2 percent in 2024 in the June edition of the World Bank’s Global Economic Prospects report, published on Wednesday.

The report says the growth is projected to ease this year in the country as a result of tight monetary policy, declining money transfer inflows and a slowdown among trading partners.

“There are significant risks to the outlook, including those stemming from geopolitical uncertainties”, it says.

However, the growth forecast is still higher in June’s edition compared to the January one, when a 4.8 percent growth was projected.

• World Bank projects Georgian economy to grow 4.8 percent in 2024

The report says the Georgian economy expanded by 7.5 percent in 2023 after two years of double-digit growth, driven by “strong investment”.

It said economic activity remained robust in 2024, growing by nine percent year-on-year in the first four months.

The World Bank noted inflation declined “sharply” in 2023, driven by lower commodity prices, particularly for food and fuel and a strong Georgian lari. Annual inflation was at two percent last month, while core inflation was 1.7 percent y/y. The Bank said inflation was expected to converge to its three percent target by end-2024.

Overall, the global economy is expected to stabilise for the first time in three years this year, but at a level that is weak by recent historical standards, the report reads.