Georgian GDP continues its robust recovery – Renaissance Capital

Georgia Materials 26 October 2021 19:21 (UTC +04:00)
Georgian GDP continues its robust recovery – Renaissance Capital

BAKU, Azerbaijan, Oct. 26

By Maryana Akhmedova – Trend:

Georgia continues to show the strongest economic growth in the region, Trend reports via Renaissance Capital overview of Georgian economy.

According to the Renaissance Capital, the rebound in external inflows contributed to the Georgian economic growth the most.

Georgia's GDP continued its robust recovery in the third quarter of 2021, with 10 percent year-on-year growth in July and August, implying 12 percent year-on-year growth in first 8 months of 2021.

Tourism revenues reached 34 percent of the pre-crisis level over first 9 months of 2021, remittances grew by 28 percent year-on-year, while exports of goods and foreign direct investments also returned to the pre-crisis level in the second quarter of 2021.

According to the report, the recovery of external inflows, together with a decrease in political uncertainty, allows to expect Georgian lari to strengthen by 3 percent in 2021-2022.

Renaissance Capital forecasts Georgia’s GDP growth at 9.2 percent in 2021 and 6 percent in 2022, compared to the International Monetary Fund's forecast of 7.7 percent growth in 2021 and 5.8 percent – in 2022.

“Current trends indicate that upside risks prevail for our 2021 forecast,” the report said.


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