World Bank Predicts Georgian Economic Growth to Reduce

World Bank reduced the prognosis of Georgian economic growth to 4.6%. The bank names the main reason to be the weakened external demand, as well as the regulations set by the National Bank, directed towards responsible credibility. The bank anticipates the prognosis to grow up to 5% only by 2021. The last prognosis for the year 2019 was also 5%.

Moreover, the bank notes, that the new regulations set within the bank sector will, one on hand, weaken the credibility and the demand from the side of the private sector, however, will strengthen the financial sector overall.

Among the risks influencing the economy the bank names the state-owned manufactures. In the report, it is said, that 57 out of these manufactures are of high risk, which is followed by the obligations foreseen by the PPP contracts.

Among 24 European and Central Asian countries, the bank anticipates the economic growth to be higher than Georgian economic growth in following countries: Uzbekistan, Turkmenistan and Tajikistan.

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