BAKU, Azerbaijan, April 5. Asian Development Bank (ADB) expects Georgia's current account deficit is forecast to widen to equal 5 percent of GDP in 2023 and 6 percent in 2024 as the trade deficit deepens, Trend reports via the latest Asian Development Outlook.
According to the report, Georgia's exports growth is forecast to decline to 10.7 percent in the current year, as the economic slowdown in the eurozone and the recession in Russia could affect external demand and supply chains.
However, the bank projects a slight recovery for the country's exports growth to 11.2 percent in 2024.
"Import growth is also expected to diminish to 11.6 percent in 2023 and 6.2 percent in 2024 in line with slowing domestic economic expansion," the report added.
At the same time, services should rise by 18.8 percent in 2023 before slowing to 11.2 percent in 2024, as the tourism and transport services recover, and then slow down.
"Money transfers are forecast to fall to $2.5 billion in each year as external inflows from migrants moderate, possibly creating exchange rate pressures. Gross reserves are projected at $4.6 billion in 2023 and $4.7 billion in 2024. Public external debt is projected to fall to the equivalent of 28 percent of GDP at the end of 2023 and 27.5 percent a year later, and total external debt to 73.1 percent and then 68.4 percent," the bank added.
Meanwhile, ADB expects Georgia's GDP growth to drop from a double-digit growth of 10.2 percent in 2022 to 4.5 percent in the current year, and to reaccelerate to 5 percent in 2024.