World Bank projects Georgian economy to grow 7.5% in 2024, 5.2% in 2025, 5% in 2026

The World Bank on Thursday projected the Georgian economy to grow by 7.5 percent this year - “well above the potential level” - as well as 5.2 percent in 2025 and five percent in 2026.

The Europe and Central Asia Economic Update of the Bank said growth was driven by  household consumption, investment, and Government spending.    

Re-exports to Central Asia (mainly used cars) have surged over the past year, while the trade deficit is expected to remain in double digits. In the medium term, growth is expected to moderate to five percent, returning to its potential rate”, the report reads.

It also highlights “key downside risks” to this scenario, including “uncertainties” related to the post-October 26 Parliamentary election landscape and Georgia’s commitment to making “decisive progress” on European Union accession.

The European Bank for Reconstruction and Development in September raised the country's economic growth forecast for 2024 by 1.3 percentage points, to 6.5 percent, from its previous prediction in May, following “strong growth” in manufacturing output.

The Asian Development Bank has also raised the country’s economic growth forecast, saying the gross domestic product of the country would grow by seven percent this year instead of the previous projection of five percent made in April.

In the meantime, the Georgian economy grew by 12 percent year-on-year in August, while the average real gross domestic product growth for January-August equalled 10 percent, the National Statistics Office said in its latest update of the figure.