World Bank Forecasts Georgia's Economic Growth

The World Bank has increased Georgia's economic growth forecast. The international organization predicts that Georgia’s Gross Domestic Product (GDP) will grow by 4.2% in 2018, 4.7% in 2019 and 5% in 2020.

The World Bank’s Global Economic Prospects report shows that with such a forecast, Georgia is one of the leading countries among the neighboring states in terms of economic growth: Armenia will experience 3.8 % economic growth, Azerbaijan 0.9 %, Russia 1.7 % and Turkey 3.5% growth.

The previous report of the World Bank was published in June, 2017. Then, the World Bank expected 4% growth in 2018, and in 2019 a 4.5% growth.

The economic growth rate of 2017 has also improved. In the previous report, the World Bank pointed out that Georgia’s GDP would grow by 3.5% and now it is estimated at 4.3%.

According to the National Statistics Office of Georgia (Geostat) official statistics, in 11 months of 2017, economic growth was 4.8%. In 2018, the Georgian government hopes for a 4.5 % indicator.

In general, the WB report reads that growth in the Europe and Central Asia (ECA) region is estimated to have accelerated from 1.7% in 2016 to 3.8% in 2017, up from 2.5% expected in June 2017. Growth is expected to moderate to 2.9% in 2018 and stabilize at 3% in 2019-20.

As for the global economic prospects, the World Bank forecasts global economic growth to edge up to 3.1% in 2018 after a much stronger-than-expected 2017, as recovery in investment, manufacturing, and trade continues. Growth in advanced economies is expected to moderate slightly to 2.2% in 2018.

By Thea Morrison