BAKU, Azerbaijan, Dec. 23
By Maryana Akhmedova – Trend:
Galt & Taggart expects the economic growth in Georgia to be at 5 percent in 2022, which is below the IMF’s (5.8 percent) and the Georgian Government’s (6 percent) projections, Trend reports via the macroeconomic report from the Galt & Taggart.
Meanwhile, Georgia continues to show the highest economic recovery in the region with the real GDP growth of 10.5 percent over the first 10 months of 2021, which is an increase of 3.7 percent, compared to the same period of 2019 (before the COVID-19 pandemic).
Georgia recorded growth in all key economic sectors in the reporting period of 2021, such as manufacturing, trade, transportation, real estate and hospitality, with a decline only in the construction sector, which Galt & Taggart expects to recover in the fourth quarter of 2021, as construction materials imports and bank lending to construction sector increase.
The economic growth in Georgia is due to recovery in exports and remittances, and ongoing recovery in tourism along with strong bank lending and fiscal stimulus, the report said.
Galt & Taggart also projects tourism sector recovery in 2022 at 80-85 percent of the 2019 level.
We see upsides to our growth projection if tourism recovers stronger than we currently expect, while the COVID-19 pandemic and regional geopolitical tensions remain downside risks, Galt & Taggart concluded.
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