Economic growth in Georgia is projected to reach 4.6% in 2019, says the International Monetary Fund.
An IMF team led by Mercedes Vera-Martin visited Tbilisi during 20-26 February 2019 to discuss recent economic and financial developments and progress with structural reforms.
At the end of the visit, Vera-Martin issued a statement in which she said that significant infrastructure investment is expected to compensate for weaker external demand and slower credit growth in Georgia.
Scaling up infrastructure expenditure will need to be accompanied by improved project selection and management. The current account deficit is projected at around 8% of GDP, owing to still robust growth in exports and remittances” said Vera-Martin.
Risks to the outlook are mainly on the downside, including weaker trading partner growth, global trade tensions, and a sharper-than-projected credit slowdown. This calls for continued prudent macroeconomic policies, exchange rate flexibility and a buildup of reserves”, she added.
An IMF team commended the Georgian authorities for advancing structural reforms and stressed the need for continued efforts to promote inclusive growth and higher economic resilience to external shocks.
An IMF team will visit Georgia for the fourth review of Georgia’s IMF-supported program in April-May.
The World Bank forecasts 4.6% economic growth in Georgia in 2019, 4.8% in 2020 and 5% in 2021, shows Europe and Central Asia Economic Update of the World Bank.
As for Georgia’s neighbouring countries, Armenia will experience 4.2% economic growth, Azerbaijan – 3.3% growth, Russia – 1.4% growth and Turkey – 1% growth.
Another report of the World Bank which was published in January 2019 said that the Georgian economy would grow 5% in 2019, 5% in 2020 and again 5% in 2021.
Asian Development Bank has also published its economic forecast recently, which said that the Georgian economy will grow by 5% in 2019 and by 4.9% in 2020.