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Government Cuts Economic Growth Forecast

Georgian Government expects more than four percent growth of economy in 2015, Finance Minister Nodar Khaduri declaredat the government meeting  today. Yesterday the Government specified the current year’s economic growth forecast not only in Georgia but in the neighboring countries and declared that all of them would have stagnation in their economies.

“A zero growth is observed  in the economies of Armenia and Moldova. Russian economy will collapse this year as well. Belarus will experience a zero  economic growth. Azerbaijani economy will grow by -1, 5 percent. As for Georgia, our economy will grow by more than four percent,”-  Khaduri said.

This year it was forecasted that Georgian economy would experience five percent growth. The forecast was changed due to Georgian national currency depreciation, which still continue tumbling after slight strengthen. Currently the official rate is 1.9977 GEL to 1 USD while it was 1.9933 GEL yesterday.

Because of  GEL depreciation the National Bank of Georgia was going to tighten monetary policy to control the economy. However, Nodar Khaduri explains that Lari has been strengthening already and there is no need the National Bank of Georgia to involve in this process.

He added that GEL  is one of the most stable floating exchanges in the region. Khaduri expressed his hope that GEL wouldmaintain its stability.