BAKU, Azerbaijan, April 5. Asian Development Bank (ADB) forecasts Georgia's economic growth to slow down considerably in 2023, Trend reports via the latest Asian Development Outlook.
Thus, the GDP is expected to drop from a double-digit growth of 10.2 percent in 2022 to 4.5 percent in the current year.
According to the bank, Georgia's economy performed strongly over the last year, with an estimated growth of 10.2 percent, which is a little down from 10.5 percent in 2021.
"Industry growth accelerated from 3.2 percent in 2021 to 15.4 percent, led by gains in mining at 21.2 percent, construction 6.2 percent, and utilities 48.9 percent," the report said.
However, as ADB economists noted, despite a strong recovery in tourism and significant growth in information and communications by 36.8 percent, and transport - by 27.2 percent, growth in services slowed to 9.6 percent. Meanwhile, favorable weather and increased demand for food boosted agricultural growth from 1.4 percent in 2021 to 4.2 percent in 2022.
"In 2023, growth will decelerate to 4.5 percent as migrant and financial inflows are expected to subside, and as slower growth or recession in trade partners inhibits export growth and cuts money transfers," the report said.
At the same time, the bank projects the country's economic growth to reaccelerate to 5 percent in 2024.
"On the supply side, industry is forecast to expand by 3.9 percent in 2023 and 4.9 percent in 2024, with continued increases in construction. Services are projected to grow by 5.2 percent in 2023 and 5.7 percent in 2024 from continued expansion in service exports and tourism. Agriculture is expected to grow in both 2023 and 2024, reflecting government investment in modern farm technologies," the report added.