The World Bank Has Reduced The Economic Growth Forecast For Georgia
The World Bank has reduced the economic growth forecast for Georgia. In 2017, World Bank forecasts 3,5% economic growth in Georgia, while the last forecast was 5,2%.
In addition, according to the World Bank report, in Georgia, in the current year, the inflation rate will remain higher than forecasted 4% and will make 5,7%.
For 2018, World Bank forecasts 4% economic growth and 4,5% – for 2019.
As for the Georgia’s neighboring countries, in the current year, World Bank expects 2,7% economic growth in Armenia, 3,5 – in Turkey. According to the forecast of the Bank, economy will decrease in Azerbaijan by 1,4% and will grow in Russia by 1,3%. The World Bank states in its report that the economic growth in the country will be greatly affected by investments and recovery of economy in Georgia’s main export countries.
As the driver for economic growth during following years, World Bank names strengthening of economic relations with EU. In addition, WB states that the poverty rate will keep decreasing and will make 26,8% in 2018.