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EBRD revises forecast for Georgia's economic growth in 2011

Business Materials 29 July 2011 20:27 (UTC +04:00)

Georgia, Tbilisi, July 29 / Trend N.Kirtzkhalia /

The European Bank for Reconstruction and Development (EBRD) has lowered the forecast for GDP growth in Georgia in 2011 by 0.5 percentage points - from 5.5 percent to 5 percent, the bank's report reads. However, the EBRD confirmed the forecast of GDP growth in Georgia at 4 percent in 2012.

The Bank published the previous forecast in May 2011.

"Georgia's economy continues to grow after the 2008events and the global financial crisis. Since a significant package of assistance provided to a wide range of donors during the crisis, is close to the end. The authorities focus their efforts on attracting foreign direct investment, as well as the development of the economy's tourism and agriculture sectors," the report reads.

However, the Bank notes that Georgia recently passed a law on fiscal responsibility, which defines the limits for budget deficits and public debt, and also enhances the predictability of the tax system, with a view to maintain a favorable business environment in the country and increase investor confidence.

IMF predicts GDP growth in Georgia at 5.5 percent in 2011 and 4.8 percent in 2012.

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