National Bank President Projects Georgian Economy Will Grow 5% in 2021

The President of the National Bank of Georgia, Koba Gvenetadze, projects the Georgian economy will grow 5% in 2021.

"I think from today's perspective, the forecast for a 5% decline in 2020 is quite realistic. Based on the 10-month data, the economic growth is -5.1% and we expect a similar decline in November-December. Also, since the restrictions imposed now are lighter than the ones imposed in the spring, I think this drop will be close to the rate we had in those 10 months. However, it should be noted that lending activity is quite high, which helps the economy and domestic demand.

"Regarding next year, we think that in 2021 the economy can grow by 5%. Do not forget that fiscal stimulus is also planned at a fairly high level, while lending activity is to be maintained. We have to take into account that it is very difficult to make predictions during such a pandemic, and there is a lot of uncertainty," he said.

For the record, the 2021 budget was projected at 4.3% economic growth. At the same time, a 5% decline in the economy is projected in 2020.

By Ana Dumbadze