BAKU, Azerbaijan, June 26
By Tamilla Mammadova – Trend:
Georgia’s economy will shrink by 4.5 percent-5.5 percent in 2020, and growth will reach 5-6 percent in 2021, Trend reports with reference to TBC Research Group at Georgian TBC Bank.
According to the TBC experts, the epidemic situation in the countries of the region is still difficult, which led to a delay in opening borders.
As reported, a sharp depreciation of the lari exchange rate is unlikely, and by the end of the year, the value of the national currency will stabilize.
“The effect of deterioration in tourist inflows and foreign direct investment (FDI), as well as the expected effect of fiscal stimulus, is offset by relatively improved expectations for exports and remittances. The increase is in the range of 5-6 percent," the report said.
Inflation expectations (from 5 percent to 4.5 percent) and refinancing rates (from 8 percent to 7.75 percent) were reduced compared with the May forecast of TBC Research Group.
"The dynamics of bookings in the hotel sector is growing, mainly due to domestic tourism, but with the postponement of the opening of borders, the expectations of the tourism sector for 2020 are somewhat worsening," the TBC's report said.
As reported, the annual change in non-cash expenses in the financial sector is currently characterized by growing dynamics, but it is important to increase the share of non-cash payments.
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