WB: Economic growth to remain positive in Georgia
Baku, Azerbaijan, October 9
By Tamilla Mammadova – Trend:
Although easing, economic growth will remain positive and generate more employment and other income-generating opportunities at the bottom of the income distribution in Georgia, Trend reports referring to the World Bank report.
Increased social assistance spending may also help to reduce poverty, but the impact on fiscal sustainability will need to be considered carefully.
The inclusion of liabilities from Public-Private Partnerships (PPPs) in public debt is also an important step. Georgia is vulnerable to regional developments and the risks associated with a sharp decline in demand for exports of its goods and services or a reduction in remittance inflows.
A fresh round of disturbances in Russia or Turkey could undermine Georgia’s tourism and investment prospects, complicate access to financial markets, and negatively impact economic growth. At the same time, with its stable business environment, Georgia is well placed to attract investors from neighboring countries.
Despite some progress in 2018, rural poverty remains a challenge. Providing new job opportunities to workers currently employed in low-productivity agriculture - and supporting productivity increases in agricultural production - will be critical to reducing rural poverty.