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Moody’s downgrades Georgia’s GDP growth forecast

Georgia Materials 11 May 2022 18:42 (UTC +04:00)
Moody’s downgrades Georgia’s GDP growth forecast
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, May 11. Georgia’s GDP growth in 2022 is projected at 3.8 percent, down from an earlier forecast of 7.3 percent, Moody’s Investors Service told Trend.

The conflict between Russia and Ukraine clearly impacts Georgia’s exports, business investment and consumer demand, the source said.

According to Moody’s, the tightening of the refinancing rate by the National Bank of Georgia will add to the downwards pressure on the economy.

“Having said that, the economy had strong momentum at the end of last year and so the slowdown in growth shouldn’t be excessive and the ongoing effects of recovery from the pandemic will put a floor under growth,” the source noted.

As the International Monetary Fund (IMF) announced the establishment of a staff-level agreement with the Georgian authorities on a three-year Stand-by Arrangement (SBA) of about $289 million, this would also support the capacity to ease fiscal policy if necessary, Moody’s added.

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