According to the Asian Development Outlook report of the Asian Development Bank (ADB), growth is forecast to decelerate to 4.5% in 2018 in Georgia, with slower growth in services, and then rise to 4.7% in 2019 on higher consumption, public investment, and net exports.

“On the supply side, industry is forecast to expand by 5.4% in 2018 and 5.8% in 2019, with strong growth in construction and a rebound in utilities. Services are projected to grow by 4.5% in 2018 and 4.8% in 2019 on further gains in tourism and finance. With continued help from government programs, agriculture is expected to expand by 2.1% in 2018 and 3.7% in 2019.

Pension and capital market reforms planned for the second half of 2018 should support growth by boosting savings and investment. Further support should come from anticipated reforms to upgrade infrastructure, improve arrangements for public–private partnership, promote trade integration, and strengthen public procurement. A downside risk to the forecast is weaker exports if Georgia’s trading partners underperform. By contrast, a stronger external environment could accelerate growth beyond current projections. Inflation is projected to slow to 3.5% in 2018 as the impact of one-time increases in excise taxes wanes.

A further slowing toward 3.0% is projected for 2019 as fiscal discipline, supported by Georgia’s current arrangement with the International Monetary Fund, promises to stabilize prices. Growth above expectations could boost inflation, however, as could energy or food price increases above current forecasts or currency depreciation if US monetary policy tightens faster than expected,” says the report.

As Permanent Representative of the Asian Development Bank in Georgia Yesim Elhan Kayalar told journalists after the presentation, their goal is Georgia to reach the level of middle income countries.

“Since 2007, 2.7 billion dollars has been invested in Georgia. Now our investment package is 1.5 billion and our goal is to take Georgia to the level of middle income countries,” said Yesim Elhan Kayalar.