Georgia to see economic growth in 2022, Galt & Taggart forecasts

Georgia Materials 16 November 2021 13:06 (UTC +04:00)

BAKU, Azerbaijan, Nov. 16

By Maryana Akhmedova – Trend:

Georgian government revised the 2021 growth forecast upwards to 10 percent from projected 9.5 percent in the second 2022 budget draft, Trend reports via Galt & Taggart weekly market watch.

According to the report, Georgian government has submitted a second draft of 2022 budget to the parliament, incorporating revised macro parameters for 2021 as well.

The 2022 draft state budget of Georgia is based on the assumption of real GDP growth of 6 percent and a deflator of 4.5 percent, the report said.

Consolidated budget tax revenues are set to increase by 19.3 percent year-on-year – to 23.7 percent of the GDP in 2022 due to termination of providing COVID-19 related tax relief, Galt & Taggart said.

According to the review, current expenditures are set to reduce to 22.6 percent of the GDP in 2022 (decrease from 26.2 percent in 2020 and 24.6 percent in 2021), as COVID-19 related healthcare expenditures are planned to be reduced due to planned increase in wages by 236 million Georgian lari ($75.1 million) in 2022.

Meanwhile, capital expenditures remain high at 8.6 percent of the GDP in 2022, while the fiscal deficit is projected at 4.4 percent of the GDP (decrease from 6.7 percent in 2021).

Public debt is projected at 52.2 percent of the GDP for 2022, slightly down from 52.5 percent of the GDP in 2021, Galt & Taggart said.


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