The World Bank Has Increased Georgia’s Economic Growth Forecast

The World Bank Has Increased Georgia’s Economic Growth Forecast

In 2017, World Bank is expecting 4,0% economic growth in Georgia. Previous forecast of the Bank was 3,5%. 4,0% growth is also expected by the Bank in 2018 in Georgia and 4,5% in 2019.

In its report, the World Bank states that Georgia has shown significant growth in 2017. In the first half of the year, the country’s export increased by 30%. Also, the rate of cash transfers increased significantly. As a result, in the first half, economic growth rate was 4,9%.

“In the country, stability of the banking sector is strengthened by reasonable supervision. The share of delinquent debts is only 3,0% of total volume, which, compared to last year, is 1,0% less. Since 2010, poverty rate has been showing reduction trend, which is also retained in 2017. In the mid-term, the country’s economic growth will be 4,5%, however, there still are risks”, – reads the report. Meanwhile, the World Bank states that this year, stimulation of economic growth was supported by state investments and improved position at export markets.

WB reports that during next years, the growth prospect will depend upon relations with European Union, negative risks emerge first of all due to global events.

The World Bank expect reduction of poverty rate in Georgia to 20,9% by 2019.

The World Bank names state-owned enterprises and guaranteed purchase agreement in energy projects as fiscal risks in Georgia. Besides, the World Bank states that high rate of unemployment in rural areas will be retained until jobs, unrelated to agricultural sector, are created. 

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