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Bank of Georgia discusses revised outlook for country’s economic growth in 2021

Business Materials 13 April 2021 13:57 (UTC +04:00)
Bank of Georgia discusses revised outlook for country’s economic growth in 2021

BAKU, Azerbaijan, April 13

Tamilla Mammadova – Trend:

Georgian economy should have grown by 5 percent in 2021 by the initial forecast, but the bank's outlook for Georgia's economic growth has been replaced by a more negative scenario due to the downside risks, said Archil Gachechiladze, General Director of the Bank of Georgia, Trend reports via Georgian media.

"Overall, there is optimism, but it is still low. With a better scenario, we have expected 5 percent economic growth, while in the case of negative scenario - 3.5 percent. I think the chances for a negative scenario are grown, which has been also noted by the IMF. However, positive chances are still there," said the CEO of the Bank of Georgia.

According to Gachechiladze, the main variables which affect the Georgian economy are the pace of vaccination and the volume of international tourists.

"So far, the vaccination rate is low. It is important that people who have more social contact with tourists must be vaccinated as soon as possible. This is important for tourists who come to Georgia to feel comfortable. There are good examples of that worldwide, but we still lag behind this trend for months," said Gachechiladze.

The International Monetary Fund reduced Georgia's economic growth outlook from 4.3 percent to 3.5 percent in a report released last week. The Georgian government maintains a forecast of 4.3 percent economic growth.

According to the IMF report, 5.8 percent economic growth is expected in Georgia in 2022, and economic growth of 5.5 percent is expected in 2023.

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