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World Bank Ups Georgia’s Economic growth Forecast

World Bank Ups Georgia’s Economic growth Forecast

The World Bank (WB) forecasts Georgia’s economic growth pace to reach 4% in 2017, up from the previous forecast of 3.5%. WB forecasts 4% upturn in 2018 too, while the 2019 outlook was determined by 4.5%.

The WB report reads that Georgia has recorded a strong growth in 2017. The exports rose by 30% in the first half of 2017, money transfers also considerably increased. As a result,the economic growth in the first half reached 4.9%.

“Reasonable supervision enhances stability of the banking sector in the country. Ratio of overdue loans in total volume constitutes only 3%, down 1% year on year. The poverty level is declining since 2010 and this tendency will be maintained in 2017 too. In midterm period economic growth will be 4.5%, but certain risks still exist”, the report reads. 

At the same time, the WB notes that in 2017 economic growth was stimulated by state investments and improved trends on exports markets.

In the coming years the growth perspectives will depend on relations with EU. Negative risks, first of all, derive from global trends.

The WB also expects the poverty level to drop to 20.9% by 2019.