BAKU, Azerbaijan, June 16. The World Bank expects Georgia's economic growth rate to slow down in the future, despite the previous GDP growth of 7.3 percent in four months, Trend reports.
The National Statistics Service of Georgia indicates GDP growth in April 2023 by 7.5 percent compared to the same period last year, while the average GDP growth rate from January through April 2023 was 7.3 percent.
The main factor of economic growth is related to maintenance costs, while industrial activity shows a decline. Georgia's economic growth is projected to slow to 4.4 percent during 2023 due to a slowdown in growth in the partner countries until the situation stabilizes at 5 percent.
The low inflation rate, which reached 1.5 percent in May due to low international prices and the strengthening of the national currency (lari), will remain below the target level of 3 percent with tight monetary policy.
Meanwhile, there are balanced risks. Changes in cash inflows and global conditions may negatively affect the lari exchange rate and macro-financial stability due to high dollarization. Moreover, continued cash inflows may benefit Georgia through the renewal of trade links and transport corridors.
The World Bank forecasts a decline in global economic growth from 3.1 percent to 2.1 percent globally, while in emerging markets and developing countries – from 4.1 percent to 2.9 percent. In the leading economies, growth is expected to decline from 2.6 percent to 0.7 percent. An important factor for them will be tightening monetary policy and rising energy prices.