ADB Expects Inflation Rate in Georgia will be above Target Rate
The Asian Development Bank (ADB) downgraded Georgia's economic growth forecast. The Bank forecasts 4.7% economic growth in Georgia this year, which is 0.3% less than the previous forecast.
The bank lowered its forecast for next year to 4.6% instead of 4.9%.
However, the ADB expects that by the end of the year the inflation rate in Georgia will be above the target rate of 3% and will average 4.3% in 2019 and 3.5% in 2020.
As for the decline in economic growth forecast, ADB cites one of the reasons for the decline in construction and manufacturing.
In the first half of 2019, compared to the first half of 2018, the Georgian economy (real GDP) grew by 4.7% (compared to 5.4% in the first half of 2018).
In H1 of 2019, there was a decline in three sectors of the economy: construction decreased by 6.8%, mining industry by 5.8% and manufacturing by 3.2%.