BAKU, Azerbaijan, April 11. Georgia’s GDP growth in 2022 is expected to drop to 2.5 percent, compared to the initial forecast of 5.5 percent, Trend reports via the press service of the World Bank (WB).
According to the WB, the hostilities between Russia and Ukraine will negatively impact Georgian economy through reductions in trade, tourism and remittances, as well as elevated commodity prices.
However, the baseline outlook for 2023 envisages that the monetary policy easing, tourism sector recovery, and the restoration of economic links will stimulate the growth recovery, the WB said.
“Georgia is well placed to manage the economic fallout of the war due to reasonable fiscal and external buffers and a credible macro-financial framework. The banking sector is entering the crisis in relatively strong shape, government deposits are sizeable, and debt is likely to remain sustainable,” said Sebastian Molineus, World Bank Regional Director for the South Caucasus, said.
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