BAKU, Azerbaijan, Dec. 6
By Maryana Akhmedova – Trend:
Georgia’s TBC Capital published a weekly update on the country’s economic growth, Trend reports via TBC Capital.
Georgia’s real GDP growth in October 2021 was at 6.9 percent, which supports TBC Capital’s projection for 10 percent economic growth by the end of the current year, the report said
Georgia has recorded economic growth in the reporting period of 2021 in almost all sectors, except for the construction sector, probably due to the restraining fiscal policy, TBC Capital said.
According to the report, Georgia’s capital inflows showed strong dynamics, at the same time, imports and lending declined slightly.
The inflation rate in Georgia in November 2021 met the expectations (12.5 percent) after increased seasonally adjusted inflation in October 2021, leading to a price increase below 3 percent, which is similar to the September rate, the report said.
Due to the appreciation of the national currency (Georgian Lari) and lower oil prices, TBC Capital forecasts a further decline in inflation.
Thus, unless Georgian lari depreciates again, assuming the price for Brent oil at $85 and the GDP growth in Georgia at 6 percent, the inflation rate in Georgia in 2022 should stand below the target at 3.1 percent, TBC Capital concluded.
Follow the author on Twitter: @mariiiakhm