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Georgia to Achieve Economic Growth If It Benefits with Free Trade Agreement with Europe

According to National Bank,Georgia will achieve higher economic growth if it benefits with free trade agreement with Europe. In the GDP forecast risk, foreign sector still plays the most significant role.

Central Bank revealed that considering geopolitical tension, if economic crisis becomes more severe in trade partner countries, this could effect on Georgia more than expected and economic growth will be decreased.

“There are certain risks about exchanges rates of USD and EURO at the international currency markets, which influences on economic activity and GEL exchange rate. On the other hand, if we use the opportunity of free trade agreement with Europe or investment projects are accelerated, business environment will be improved more than ever and as a result, GDP growth rate will be relatively high”. 

National Bank of Georgia doesn’t change its forecast yet and expects 4% GDP growth rate in 2017.