Georgia plans to revise its 2021 economic growth forecast
BAKU, Azerbaijan, May 18
Tamilla Mammadova – Trend:
Georgian government plans to revise its 2021 economic growth forecast, said Finance Minister Lasha Khutsishvili, Trend reports via Georgian media.
According to the minister, the government has decided to adjust the economic growth benchmark due to the improved economic parameters.
"Certainly, there is no revision in the direction of reduction. Expectations are better than they were during the year, and both export data and other economic activity data are better than we expected at the beginning of the year. We are talking about adjusting for growth rather than declining," he said.
The International Monetary Fund (IMF) forecasts, and the Asian Development Bank (ADB), which have reduced their growth forecasts due to slow vaccinations and low tourist flows in Georgia, are entirely different.
The IMF cut its forecast from 4.3 percent to 3.5 percent in early April, and a few weeks ago, it was followed by the Asian Development Bank, which cut its 2021 growth forecast from 4.5 percent to 3.5 percent.
Along with the economic growth parameter, the 2021 budget may be completely adjusted. According to the Minister of Finance, the draft budget adjustment will be developed by the government later, after more information on economic recovery will be available.
In the first quarter of 2021, the Georgian economy shrank by 4.2 percent compared to the same period in 2020.
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