BAKU, Azerbaijan, April 11. The Asian Development Bank (ADB) expects Georgia's GDP growth to slow down further to 5 percent in 2024, Trend reports.
As the bank analysts explain, this is due to the decreased external demand, and services aren't growing as fast.
However, things might pick up a bit in 2025, with GDP growth bouncing back to 5.5 percent, the ADB says. This recovery is expected due to more tourists coming in and higher investment activity.
Looking at where this growth is coming from, the service sector's growth is predicted to slow to 5.5 percent in 2024 due to tensions in the region. But it's expected to rise to 6.3 percent in 2025, mainly because more tourists are expected to visit, the bank added.
Meanwhile, the industry sector's growth is expected to speed up to 4.2 percent in 2024 and 4.9 percent in 2025, thanks to a boost in the production of ferroalloys.
As for agriculture, it's projected to slow to 0.5 percent growth in 2024 because of problems with supply chains. But it should improve to 1.1 percent growth in 2025, thanks to more government support for farmers and investment in new technologies, the ADB noted
Moreover, the bank analysts noted that, the European Union's decision in December 2023 to consider Georgia for membership is expected to push forward reforms, supported by investments from the EU.
