World Bank decreases GDP growth forecast for Georgia

Business Materials 9 January 2020 16:00 (UTC +04:00)

BAKU, Azerbaijan, Jan. 9

By Tamilla Mammadova – Trend:

World Bank has decreased its GDP growth forecast for Georgia for 2020 from 5.2 percent to 4.3 percent, Trend reports with reference to the January Global Economic Prospects report published by World Bank.

According to the report, WB forecasts that Georgia’s GDP growth will be 4.5 percent in 2021 and 4.5 percent in 2022.

As noted in the report, firming growth in the South Caucasus to an estimated 3.7 percent in 2019, was supported by private consumption and by strong manufacturing growth on the supply side.

“In Georgia, in 2019 growth strengthened despite the imposition of travel restrictions by Russia,” said the bank.

Return on equity (ROE) and return on assets (ROA) stood at 16.4 percent (1 percentage point lower than in 2018) and 2.1 percent (0.1 percentage point lower than in 2018), respectively in September 2019.

“Meanwhile, the budget continued to perform well. Revenues increased by almost 9 percent year-on-year in September 2019, bringing the growth rate in the first nine months of the year to 10 percent”, said the bank.

With this, the deficit increased to around 1.2 percent of GDP, compared to budgeted deficit target of 2.7 percent of GDP for the year.


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